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Tax Office Adopts A Wider View

In Order to Increase Tax Revenues, Tax Office To Look for Data from New Sources.

(5/6/2002) Faced with the need to increase tax revenues, the Director General of Taxation has announced plans to begin exchanging information with between government departments and private enterprise in order to bring into line those residents who continue to avoid their tax obligations.

The Director General, Mr. Hadi Poernomo will have obtain important new insights on the tax paying behavior of local tax payers by, for the first time, comparing various information available from the Department of Agriculture, the State Logistic Board, the telephone and electrical company, and the department of vehicle registration. Such data, together with that available from other sources, is expected to show patterns where personal expenditure patterns and life style are out of synch with personal income figures reported to the tax office. The program, already underway, is expected to reap substantial revenues for the government as well as encourage taxpayers to be more forthright under the Indonesian self-assessment tax system.

Recent tax laws changes make foreigners, who spend more than 186 days annually in Indonesia, subject to tax on their world-wide incomes.

The State Budget for 2002 has set a tax revenue target of Rp. 184.7 trillion. The tax office reports that some Rp. 52.349 trillium (29%) of that target had been secured as of April 23, 2002.