Indonesia's Tax Authority Intensifies Compliance Checks on Wealthy Individuals

Enhanced Tax Supervision and Data Collection

Indonesia's Directorate General of Taxes (DJP) has initiated a series of summons to high-wealth individuals (HWI) as part of an intensified tax compliance review process ¹

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https://finance.detik.com/berita-ekonomi-bisnis/d-8262344/para-konglomerat-dipanggil-ditjen-pajak

. The primary objective is to reconcile the data reported in their annual tax returns (Surat Pemberitahuan Tahunan or SPT) with the comprehensive data available to the government. Director General of Taxes, Bimo Wijayanto, emphasized that these summons are part of the DJP's routine tax supervision and compliance communication efforts, conducted with a persuasive approach.

Extensive Data Collection for Compliance Benchmarking

The DJP has significantly enhanced its data collection capabilities, now possessing extensive information including beneficial ownership details. This data serves as a critical benchmark for assessing tax compliance among high-wealth individuals. Bimo Wijayanto highlighted that some taxpayers may still be unaware of the DJP's access to such comprehensive data, which has led to discrepancies in their reported tax returns ²

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Implications for Tax Compliance and Future Actions

This proactive measure by the DJP underscores the Indonesian tax authority's commitment to improving tax compliance among high-wealth individuals. By leveraging its enhanced data collection and analysis capabilities, the DJP aims to ensure that tax reporting accurately reflects the financial situations of these individuals. The tax authority's persuasive approach suggests a focus on education and compliance rather than immediate punitive measures.