TAX AUDIT ASSISTANCE
IN INDONESIA
With our expertise, we offer tax audit assistance services that not only streamline the audit process but also boost confidence and fiscal compliance for your business. From initial assessments to representation and negotiation during the audit, we are here to ensure the continuity of your operations and minimize risks.
Tax audit is a series of activities to collect and process data, details and/or proofs performed objectively in accordance with certain audit standards to ensure the compliance of taxation obligations and/or for other reasons in accordance with the governed law and regulations. Tax audit is performed by the Directorate General of Tax to supervise the compliance of taxation obligations.
Tax audits play several important roles in Indonesia's tax system.
Here are some of the key reasons why tax audits are important:
1. | Ensuring Compliance: Tax audits help ensure that taxpayers are complying with the tax laws and regulations of Indonesia. By examining taxpayers’ financial records and activities, tax authorities can identify any discrepancies or non-compliance issues and take appropriate actions to address them. |
2. | Revenue Generation: Tax audits help in the detection of tax evasion, underreporting of income, and other forms of non-compliance, which ultimately leads to increased tax revenues for the government. By identifying and correcting tax discrepancies, tax authorities can ensure that taxpayers pay their fair share of taxes. |
3. | Leveling the Playing Field: Tax audits help create a level playing field for all taxpayers by ensuring that everyone is abiding by the same tax rules and regulations. This helps prevent unfair competition between businesses and ensures that honest taxpayers are not disadvantaged by those who attempt to evade taxes. |
4. | Deterrence: The prospect of being audited acts as a deterrent against tax evasion and non-compliance. Knowing that tax authorities conduct audits and scrutinize taxpayers’ records encourages compliance with tax laws and regulations. |
5. | Improving Tax Administration: Through tax audits, tax authorities can identify areas where tax laws and regulations may be unclear or ineffective. This information can be used to improve tax administration processes, enhance tax compliance, and strengthen the overall tax system. |
6. | Enhancing Taxpayer Education and Awareness: Tax audits provide an opportunity for taxpayers to learn about their tax obligations, understand tax laws and regulations better, and improve their tax compliance practices. By educating taxpayers during the audit process, tax authorities can help promote voluntary compliance in the future. |
Overall, tax audits play a crucial role in ensuring tax compliance, detecting tax evasion, and strengthening the integrity of Indonesia's tax system. They contribute to the government's efforts to collect tax revenues efficiently and fairly while promoting a culture of compliance among taxpayers.
Previously, it should be noted that Indonesia adheres to a self-assessment system where this system gives confidence to taxpayers to calculate, deposit, and report their own tax obligations. Thus, tax audits aim to test compliance with the fulfillment of tax obligations from taxpayers.
Types of Tax Audit in Indonesia
Office Audit as performed in the office Directorate General of Tax by issuing a summon letter of audit request within 4 months period up until the Notification Letter of Audit Results (Surat Pemberitahuan Hasil Pemeriksaan) is provided.
Field Audit as performed in the domiciled registered address of the taxpayer to test the compliance of taxation obligations should be completed within 6 months after the notification letter of Field Audit is issued. The Notification Letter of Audit Results (Surat Pemberitahuan Hasil Pemeriksaan) is provided later after the audit is completed.
Objects of Tax Audit in Indonesia:
- Tax returns on loss
- Tax returns on overpaid taxes
- Tax returns fulfilling audit criterias by the Directorate General of Tax
- Late or unsubmitted tax returns
- Indicated to non-fulfillment of taxation obligations
WHY TAX AUDIT IS REQUIRED?
Ensuring Taxation Compliance
Collecting Taxation Income
Audit on Documents and Financial Statements
Detecting Taxation Noncompliance
Correcting Taxation Errors
Recommending Taxation Remedies
Benefits of Using Our Service in Tax Audit Assistance:
Firstly, we can conduct preliminary tax evaluation, identify potential areas of concern and prepare for the upcoming audit.
We provide strategic audit preparation to develop plans to address identified concerns, ensuring proper documentation and compliance to tax regulations.
During the audit process, we can act as audit representation and engage in negotiations to achieve the best possible outcome.
With our assistance of tax audit, you can rest assured that the process is hassle-free and compliant to taxations regulations.
Get Started!
Our dedicated team is ready to assist you and providing the necessary legal support to address your concerns in accordance with Indonesian law.
