To increase tax revenues, Directorate General of Taxes (DGT) continues to expand the taxation database through administrative system and regulatory improvements. In accordance with the provisions of Law Number 9 of 2017, DGT has the authority to request information and/or evidence or explanation from financial service institutions, such as banking, capital market, insurance, or other financial services.
Regarding foreign-sourced information and data, DGT can easily obtain information and data held by Taxpayers through Automatic Exchange of Information or AEoI scheme. Furthermore, Neilmaldrin Noor, Director of Counseling, Services, and Public Relations, also emphasized that DGT is open to all information related to business activities or potential taxes from the public, which will be followed up through procedures for examining Information, Data, Reports and Complaints.
According to DGT’s press release number SP-44/2022, tax potential was explored using Compliance Risk Management (CRM), which is a machine that maps taxpayer compliance risks based on Tax Return data combined with data received from third parties. This is the basis to issue appeals/clarification letters.
If a discrepancy is found, DGT will respond by issuing an appeal letter or a request for explanation/clarification. This includes sending taxpayers a Letter of Request for Explanation of Data and/or Information ("Surat Permintaan Penjelasan atas Data dan/atau Keterangan" or SP2DK).
The total number of appeals/requests for clarification that have been issued by the DGT between 2019 to 2021 is 9.5 million letters and addressed to 3.9 million taxpayers. Supervision is intensified particularly for Strategic Taxpayers. In fact, over 400 thousand letters of appeals/requests for explanations were sent to Strategic Taxpayers only between 2020 to June 2022.
