Tax amnesty relating to taxes should be attached to all citizens of this country. Especially for citizens who are taxpayers and generally do tax reporting at a certain period. Tax amnesty itself has the meaning of tax abolition. This is regulated in the Law that states Tax Amnesty. So the abolition of this tax applies to the taxpayer. So that the taxpayer only needs to disclose the property. But that’s not all taxpayers who are also obliged to pay a tax ransom. After all, this is a tangible manifestation of the existence of a pardon tax. Of course, it means the forgiveness of property that has never been reported. So the penalty was abolished. For more details, let’s look at the explanation of tax abolition below.
Tax Amnesty Objectives
1. Increase state revenue
One of the purposes of the tax amnesty or the abolition of tax penalties is to increase state revenue. Taxes themselves are a source of income or income for a country. The use of taxes is also carried out to improve the welfare of the community in general. However, there are still obstacles to tax revenue due to many factors. So it is hoped that the abolition of fines will make taxpayers no longer afraid to report and pay their taxes.
2. Improving the country’s economy
Taxes that serve to increase state income and income can have a positive impact on the country’s economy. Increasing state income can improve the country’s economy as well. Until the country’s economic condition can be improved.
It can happen because the abolition of tax penalties can build honesty among taxpayers. Later, taxpayers will carry out tax reporting voluntarily until their obligations are fulfilled. If the payment of taxes can be made appropriately then of course the state’s income is increasing. Until the country’s economic condition has also improved.
3. Towards the transition
The existing tax system in the country may change. The old and new tax systems are different. Although the essence of this system has not changed, the methods and methods may change. This tax system undergoes a transformation from the old to the new. Of course, this transition is inevitable and it is denied that it has occurred. Of course, the transition to a new tax system is considered better until the new system is implemented in the community. If this happens, tax amnesty will be the most appropriate transition tool for taxpayers.
4. Encourage taxpayer compliance
As previously discussed, the abolition of fines is expected to encourage taxpayers to report. Taxpayers no longer need to be afraid and worried about this delay in reporting. If this is successfully carried out, every taxpayer will certainly routinely report his taxes in each period. It can be said that taxpayers will become more and more compliant with the applicable provisions.
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How Tax Amnesty Works
1. Report tax amnesty
The first step in the process that occurs in the tax amnesty is the reporting process. So taxpayers can do tax amnesty reporting to KPP. Or you can also do it online so that it is faster and more practical. Please be aware that this must be done by the taxpayer concerned. So this tax amnesty reporting process cannot be represented to anyone.
2. Deposit an asset statement letter
After reporting the tax amnesty, the next step is to deposit an asset statement. Depositing this tax statement letter can be done to the tax officer. However, before doing this, you should calculate the depreciation of assets related to accounting costs. By doing careful calculations, later you will avoid overpaying taxes. Of course, this requires genuine and valid data. If the asset statement letter has been deposited, later you will get a certificate. At least you can receive this certificate after 10 days precisely since depositing the asset statement letter.
3. Taxation facilities
The last thing that becomes a step or process of tax amnesty is the existence of a tax provision facility. This tax exemption facility includes, among others, exemption from criminal sanctions. Not only criminal sanctions but also administratively free. With the abolition facility, each taxpayer is expected to be disciplined in paying taxes.
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Implementation of Tax Amnesty
Tax amnesty is imposed by the Ministry of Finance for various purposes. Of course, this has benefits, so it is considered the best way out of taxes. With the enactment of this tax amnesty, it is hoped that the community will be willing to report their taxes. The program, which is carried out under the auspices of the Directorate General of Taxes, is quite profitable for all parties. It includes taxpayers who no longer need to be afraid of paying their fines.
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Indeed, some taxpayers are still reluctant to report income and taxes that are their burden. It could have happened due to many factors. For example, because of the difficulty in calculating the amount of tax. Of course, this incomprehension creates obstacles for taxpayers to fulfill their obligations. For this reason, the abolition of this tax penalty is applied. The hope is that taxpayers are willing to immediately make tax reporting and payments. So the abolition of these fines was applied to achieve an increase in tax revenues that could support the development of the country.