Uncomplianced Taxpayers, Luhut Threatens To Complicate Administrative Affairs

JAKARTA - The government is developing a government digitalization system through Government Technology (GovTech) or Digital INA so that all government administrations will be integrated into one system.

Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan said that one of the programs that visited GovTech was the Core System of Tax Administration (Coretax) from the Ministry of Finance (Kemenkeu).

"It is also not easy for the Ministry of Finance, the Director General of Taxes (collecting taxes). We will help this with this program (GovTech). I think we will see the results in the next year. Starting gradually, and I think making a game changer, is a game changer for this country," he said at the Press Conference, Thursday, January 9.

According to Luhut, with a beliatax side, the Directorate General of Taxes can profile taxpayers based on data on their digitalized economic activities so that they can find out whether taxpayers have paid their obligations.

Therefore, Luhut said, the DEN specifically provides full support to the Directorate General of Taxes at the Ministry of Finance in implementing the quintex which is the backbone of national tax reform.

According to Luhut, this system will increase taxpayer compliance, so as to increase state revenues because digitization is not only a solution to increase efficiency, but also an important step to build public trust in governance.

"We fully support the implementation of the graffiti and other digitalization programs to ensure that every policy provides real benefits to society," he said.

According to Luhut, if the taxpayer does not pay his obligations, the government can complicate the administrative affairs of taxpayers, both individuals and corporations.

"You can't take care of your passport because you haven't paid taxes. Furthermore, what can you renew your permit, you can't, because you haven't paid this. If these four pillars have joined, it could be that in the future if you have tax arrears, maybe later you won't be able to go abroad," he explained.

According to Luhut, as well as a company, if it does not pay its obligations, all administrative matters related to export-import activities can also be hampered by tax arrears.

Luhut said, if the company has a good track record, import activities will be safe.

However, he continued, if there is no activity, it has the potential to be blocked and further examination will be carried out.

"If my data is good, the engine will release later. So there is no need to queue, but the time I have bad data, the engine will block it and later we will order it, if it is wrong, the company may be hit by a block later, so I can't walk," he said.

"We force that person to be comply with the provisions. Have you paid taxes yet? Have you paid royalties yet? That's with the system," he added.

In addition, Luhut said, this system will be equipped with artificial intelligence (AI) technology and big data to support optimization so that it is designed to increase transparency to the public and later can check the track records of everyone's tax compliance, including former officials.

"Later there will be former officials who will not comply. If for example I am a former official, hiding something, I will definitely be caught. I don't know if he was the most powerful, there is no business. Later, I will be able to see, people will be able to Google you, later if you do something wrong. So I think Indonesia will be great in the future," said Luhut.