Sri Mulyani Finds Many Companies Lose When Reporting Taxes But Their Businesses Are Growing

Minister of Finance Sri Mulyani (right) with BI Governor Perry Warjiyo (Photo: Doc. Antara)

JAKARTA - Minister of Finance, Sri Mulyani, said taxpayers (WP) of business entities that reported losses had increased from 8 percent in 2012 to 11 percent in 2019.

"Taxpayers who have reported losses for five consecutive years have increased from 5,199 WP in 2012-2016 to 9,496 WP in the 2015-2019 period", she said during a virtual working meeting with the House of Representatives Commission XI, Monday, June 28.

Ironically, the Minister of Finance said that their business activities are still running and are still in relatively good condition. In fact, some were found to have expanded their business.

"They can still operate or develop businesses in Indonesia", she said.

According to the Minister of Finance, this condition occurs because there are still many corporate taxpayers who use tax avoidance schemes.

"While Indonesia itself does not yet have a comprehensive tax avoidance instrument", she said.

Not only that, the former IMF and World Bank boss indicated that WB business entities are taking advantage of loopholes in tax regulations by parking their funds overseas. According to his records, 60-80 percent of world trade is affiliated transactions carried out by multinational companies.

Meanwhile, in the case of Indonesia, 37-42 percent of GDP (gross domestic product) is reported as the same affiliated transaction.

"This of course erodes the potential tax base and shifts in profit which is estimated at 100-240 billion US dollars per year," he said.

For information, in the 2021 State Revenue and Expenditure Budget (APBN), the government targets tax revenues of IDR 1,229.6 trillion. Meanwhile, until May 31, 2021, as much as IDR 459.6 trillion or 37.4 percent of the budget ceiling has been collected.

Then, for customs and excise of IDR 99.3 trillion and Non-Tax State Revenue (PNBP) of IDR 167.6 trillion for the first five months of this year.