The Taxation in Indonesia: Problems and Solutions

Abstract

This study aims to analyze the problems of tax collection and find alternative solutions in overcoming tax collection problems. This study uses an empirical juridical approach. The results of this study indicate that First, taxes collected by the state must be based on juridical law, both in the form of laws and other binding regulations. Second, among the problems in tax collection include: (i) The lack of tax socialization. (ii) Low ability to pay taxes, (iii) data accuracy, (iv) Low awareness of paying taxes by taxpayers and (v) Inconsistency of tax regulations. Third, to overcome problems in tax collection, the government can dosystematic cooperation in the form of information sharing between DGT and KPK with mandatory well-managed reporting and information sharing mechanisms by utilizing the Approweb Application, e-LHKPN, and the KPK Whistleblower's System. If cooperation in the exchange of information between authorities can be carried out, DGT can obtain entity data from the KPK on indicators of tax crime to monitor their tax obligations as well as provide feedback in the form of tax non-compliance profiles of entities that meet corruption indicators to the KPK.