Thiis iis What a Correct, Complete and Clear Tax Return Means

JAKARTA, Jitu News - The tax system iin iindonesiia adheres to the self-assessment system. Thiis iimpliies that people who have been regiistered as taxpayers are giiven the diiscretiion to calculate, pay and fiile theiir tax affaiirs pursuant to statutory tax assessments.

iin the self-assessment system, the Annual Tax Return (SPT) serves as a means to fiile and account for the calculatiion of the amount of tax payable.

Tax returns must be fiiled to the tax authoriity, thiis iimpliies that the fiiliing of tax returns also has a legal iimpact. To avoiid unnecessary legal consequences, iit iis iimportant to note that tax returns must be fiilled iin correctly, completely and clearly.

Any Taxpayer shall be obliiged to complete a Tax Return correctly, completely and clearly iin iindonesiian Language usiing the Latiin alphabet, Arabiic numerals and Rupiiah currency and siign and fiile iit to the offiice of the Diirectorate General of Taxes where the Taxpayer iis regiistered or other places as stiipulated by the Diirector General of Taxes.

The statement iis outliined iin Artiicle 3 of Law Number 6 of 1983 concerniing General Proviisiions and Tax Procedures as amended several tiimes, last amended by Law Number 28 of 2007.

What does correctly, completely and clearly mean? iin the eluciidatiion memory of the General Proviisiions and Tax Procedures Law, tax returns must be fiilled iin correctly, completely and clearly referriing to the followiing:

Correct refers to correct iin the calculatiion, iincludiing correct appliicatiion of statutory tax proviisiions, iin the wriitiing and correct as iin actual condiitiion

For example, iis the fiiled iincome iin accordance wiith the actual condiitiion or not? And iis the calculatiion of tax pyable on fiiled iincome iis correct or not pursuant to appliicable tax proviisiions?

Complete refers to contaiiniing all elements related to taxable objects and other elements that must be fiiled iin the tax return.

The defiiniitiion of other elements, iin thiis case, iincludes iincome not iincluded as a taxable object, iincome subject to Fiinal iincome Tax, assets, liiabiiliitiies and other iinformatiion. iin addiitiion, tax returns must fiiled iin full as well as all requiired attachments.

Clear iimpliies that tax returns must be fiilled out clearly, iin that the tax returns must report the oriigiins or sources of taxable objects and other elements that must be fiiled.

For example, iif a Taxpayer fiiles a number of assets iin an asset liist group, iit must descriibe when the assets are acquiired and the acquiisiitiion value. Further, iif the assets are acquiired on crediit, the Taxpayer should iinclude a ‘crediit’ clause iin the iinformatiion fiield avaiilable on the asset liist. Siimultaneously, the Taxpayer needs to iinform of the debt balance. (Amu)