Indonesia's Tax Authority Expands Powers to Collect Tax Debts

New Authority to Seize Shares

Indonesia's Directorate General of Taxes (DJP) under the Ministry of Finance has been granted the authority to seize and sell shares belonging to tax delinquents that are traded on the stock exchange. This significant expansion of tax collection powers targets shareholders who have significant assets in the capital market but have failed to meet their tax obligations.

Rationale Behind the Decision

The decision to include shares as part of tax collection objects is based on the significant value that these assets can represent. According to Rosmauli, Director of Counseling, Services, and Public Relations at DJP, many taxpayers hold substantial assets in the form of shares in the capital market. By including these assets in tax collection, the DJP aims to ensure that tax debts are settled.

Legal Basis and Implementation

The DJP's authority to seize and sell shares is grounded in the legal principle that tax collection can be carried out against any assets legally owned by taxpayers. This measure is seen as a necessary step to enhance tax compliance and revenue collection. The implementation of this policy will likely involve close coordination between the DJP, the Indonesia Stock Exchange, and relevant financial institutions.

Implications for Taxpayers and the Capital Market

This development has significant implications for taxpayers who hold shares and other securities in the capital market. It underscores the importance of maintaining tax compliance to avoid severe consequences, including the seizure of assets. For the capital market, it may lead to increased scrutiny of share ownership and transactions involving tax delinquents.