By: Dede August)*
The Noisy of an international scandal named Panama Papers, apparently has managed the government’s initiative to legalize the remission of tax policy (tax amnesty) on June 28, 2016. Sometimes ago, Panama Papers revealed, there are as many as 2.961 Indonesian businessmen are “parked” some of his wealth in foreign countries, especially countries with the term tax heaven or free of tax.
Seeing the potential substantial tax revenue, a repatriation of the wealth of Indonesian conglomerate is important to boost state revenues which has been estimated could grow the state revenue as much as Rp165 trillion. The amount is certainly very large and can increase state revenue that just exceeded Rp598 trillion, or only 46% of the revised Budget targets in 2015.
Tax Amnesty is the government policy to grant amnesty for taxpayers to settle at a rate that could be considered cheap. Rates are divided into three categories, namely for small and medium enterprises, for taxpayers who are willing to repatriate their assets abroad, as well as the declaration of assets abroad without repatriation.
For taxpayers who disclose assets to Rp10 billion will be charged a redemption rate of 0.5%, and if more than Rp 10 billion, subject to 2%. Then, for taxpayers who are willing to repatriate their assets abroad will be granted a 2% redemption rate for July-September 2016, 3% for the period from October to December 2016 and 5% for the period January 1, 2017 until March 31, 2017. Recently, mandatory taxes declare their assets abroad without repatriation will cost 4% for the period July-September 2016 6% for the period from October to December, 2016 and 10% for the period January to March 2017. What the small size of the ransom was regarded as a “fresh air” or “paradise” for taxpayers who previously delinquent taxes.
If the tax amnesty policy is considered a paradise, then the taxpayers should be atoned to pay off their tax arrears. However, it is not a hundred percent true, if they will pay their tax arrears, because a taxation analyst, Justin Prastowo said, Indonesian government should learn from 40 countries that have an average failure in implementing tax amnesty. Even, the International Monetary Fund (IMF) in 2008 argued that the success tax amnesty was not normal, whereas failure was normal. In addition, according to the Indonesian Forum for Budget Transparency (FITRA), Indonesia ever applied tax amnesty in 1960, unfortunately, the policy failed.
If it continues to be haunted by the shadow of the failure of other countries, the IMF statement can be a reality for Indonesia. However, the paradigm could be broke if Indonesia was able to do a more mature preparation and supported by the entire community, especially the taxpayers still at “sin”. Careful preparation is not enough simply to legalize the rule, the government should also learn from the history of the failure of this nation and other countries in applying the tax amnesty, and even harder to persuade taxpayers to pay off the arrears. Thus, the opportunity for Indonesia to become the fourth country that is successfully pursuing a policy of Tax Amnesty, after India, South Africa, and Italy, will be more wide open. Finally, the Development Plan will be easier to realize in the future for capital to be sufficient.
)* Writer is CIDISS contributor