JakartaPost-Apr 5, 2023

Tax compliance in Indonesia has slid as government figures show a drop in the share of individual taxpayers having submitted their tax returns by the March 31 deadline, which experts suggest may be due to a decline in public trust following widespread reporting about the wealth-flexing son of a high-level tax officer. Individual taxpayer compliance with the March 31 tax return submission deadline dropped to 63 percent in 2023, much lower than the 66 percent logged by the deadline a year earlier, according to tax news portal DDTC News. Compliance of nonemployee individuals plummeted to 26.84 percent as of March 31 from 45.53 percent last year, Kontan reported on Sunday. Bhima Yudhistira, director of Jakarta-based think tank Center of Economics and Law Studies (CELIOS), told The Jakarta Post on Monday that the trend may have been affected by recent cases that resulted in a probe of the high-level tax officer. He added that the government ought to conclude taxman cases to retain taxpayers’ trust, saying that dragging the cases out too long may further hurt compliance, both with regard to the tax return submission deadline and with declaring all taxable income. “This could affect our tax collection as well,” Bhima said. Read more at: https://www.thejakartapost.com/paper/2023/04/05/tax-compliance-slides-as-taxman-case-hurts-public-trust.html.