Basis for the Issuance of Notices of Tax Collection

JAKARTA, DDTCNews – MoF Reg. 80/2023 also contains the provisions on the basis for the issuance of notices of tax collection.

Pursuant to the provisions under Article 18 MoF Reg. 80/2023, notices of tax collection (surat tagihan pajak, hereinafter referred to as STP) are issued based on the results of the verification of tax administration data, audit findings or repeated audit findings.

“Notice of tax collection is a notice for the collection of tax and/or administrative penalties in the form of interest and/or fines" reads the provisions under Article 1 number 28 of MoF Reg. 80/2023, quoted on Monday (4/9/2023).

An audit refers to a series of activities to collect and process data, information and/or evidence conducted in an objective and professional manner based on auditing standards.

An audit is conducted to assess the fulfilment of tax obligations and/or for other purposes to implement statutory tax provisions.

Repeated audit, on the other hand, refers to an audit conducted on a taxpayer for whom a Notice of Tax Assessment (surat ketetapan pajak, hereinafter referred to as SKP) or SKP of land and building tax assessment (pajak bumi dan bangunan, hereinafter referred to as PBB) has been issued based on prior audit findings for the same type of tax and taxable period, a fraction of a tax year or tax year.

“The notice of tax collection is issued no later than 5 years after the tax becomes payable or the end of the taxable period, fraction of a tax year or tax year,” reads a fragment of Article 19 of MoF Reg. 80/2023.

Pursuant to Article 20 of MoF Reg. 80/2023, there are exclusions from the provisions on the issuance period of  STP. First, STP for administrative penalties in the form of interest (Article 19 paragraph (1) of the General Provisions and Tax Procedures Law). This STP is issued no later than the expiration of the collection of the Notice of Tax Underpayment Assessment (surat ketetapan pajak kurang bayar, hereinafter referred to as SKPKB) and the Notice of Additional Tax Underpayment Assessment (surat ketetapan pajak kurang bayar tambahan, hereinafter referred to as SKPKBT) and the notice of tax correction, objection decision letter, appeal decision as well as civil review decision, which increases the amount of tax due.

Second, STP for administrative penalties in the form of fines (Article 25 paragraph (9) of the General Provisions and Tax Procedures Law) may be issued no later than 5 years from the date of the issuance of the objection decision letter if the taxpayer does not file an appeal.

Third, STP for administrative penalties in the form of fines (Article 27 paragraph (5d) of the General Provisions and Tax Procedures Law) may be issued no later than 5) years from the date the appeal decision is pronounced by the tax court judge in a public trial proceeding.

Fourth, STP for administrative penalties in the form of fines (Article 27 paragraph (5f) of the General Provisions and Tax Procedures Law) may be issued no later than 2 years from the date the civil review decision is received by the director general of taxes. (kaw)