Rich Entrepreneurs Official Repentance Program

The service rooms in almost all domestic tax offices do look deserted. This is because all types of tax reporting that initially had to be face-to-face have switched to an online system. It’s just that the tax office continues to provide consulting services related to various tax issues. That morning, my schedule was to serve questions and answers for taxpayers who were interested in taking part in being a participant in the Voluntary Tax Disclosure (PPS).

A man in a black hem suit combined with khaki bottoms complete with leather loafers came to my table. From his physical appearance I can guess if he is a rich man.

“Um… can I disturb you?” he started the conversation by clearing his throat.

“During this pandemic, you should clear your throat less, it sounds a bit scary, sir,” I responded with a smile of course.

In a serious tone he added “Ah yes, I’m sorry. Look, there are a few things I want to ask about PPS. I want to have a little discussion. Can?”

“You are lucky today. I was assigned by my boss to serve all questions related to PPS. Can I help you?”

Blah blah blah the story flows.

Good luck seems to be on my side, who a few weeks before being assigned to work was provided with the PPS material office that we were selling. This elegant man invited me to have a discussion which led to my assumption as an officer in the tax office about what the Directorate General of Taxes (DGT) would do if it was later discovered that someone had not reported their assets in the Tax Return (SPT) and did not participate in PPS. . I calculated that he must have known the consequences. He just wanted to find out whether PPS is a trap or if there is still a gap for the rich to avoid taxes.

If the taxpayer does not follow the PPS and the DGT finds the unreported assets, the taxpayer will face a 200% increase in sanctions in accordance with the mandate of the Tax Amnesty Law and Government Regulation No. 36 of 2017. Tariffs and consequences in the tax amnesty law are higher. compared to the final PPh rate in PPS. In the I PPS policy scheme, the final income tax rates are 6%, 8%, and 11% of net assets that have not been disclosed in the statement letter.

Of course, the rich should join the imposition of the PPS tariff that the state provides for 6 months starting from January 1, 2022 to June 30, 2022. Take note of the deadline well. Don’t miss out on this rich businessman’s official repentance program. Participation in PPS can prevent taxpayers from being penalized for assets that have not been reported.

If rich taxpayers think there is still a loophole to avoid. Please note that currently DGT has an Automatic Exchange of Information scheme. Unlimited access to information because it covers the entire financial sector. DGT also has a global cooperation scheme. This means that the DGT already holds the key to access to peek at taxpayers’ assets hidden abroad. So even if the naughty taxpayer tries to hide Lidya’s contact with the name Jack, for example, remember, the DGT can not only access her full real name, but also complete data on assets owned, even overseas. There are not many choices among entrepreneurs who are absent from tax compliance. Report assets when PPS or will be chased by tax officials. I think we all agree that a quiet life is the goal of the success we have achieved today.

“After June [2022], Pak Suryo (Director General of Taxes) and his team will use all access to information we have to pursue assets that have not been disclosed. This is not a threat, the wong (PPS policy) is a facility,” said Sri Mulyani emphasizing the importance of entrepreneurs taking advantage of this opportunity as best they could.

I think that this policy will serve as a shield for us tax officials who in mid-2022 will later clarify the data on assets that have not been reported. We will clearly convey to wealthy businessmen if the government in this case the DGT has opened the door of “repentance” as wide as possible for six months. Indeed, this point can immediately increase the confidence of officers to come forward to collect taxes from the rich.

Rich and smart entrepreneurs certainly don’t need to think twice about taking advantage of this special moment. That said, this is the last chance for taxpayers to comply. In this digital era, it seems that the reason for not knowing the existence of PPS is not a good reason to submit it to the tax officer. While they are carrying out the mandate of the law to impose sanctions on rich businessmen who have missed taking advantage of this good opportunity. So what are you waiting for?