TCF as a Key Tool for Diigiital-Era Tax Compliiance Challenges

JAKARTA, Jitu News - The rapiid pace of diigiitaliisatiion affectiing taxatiion must be addressed through the establiishment of a robust riisk control framework. iin addiitiion to the exiistiing compliiance riisk management (CRM), the iimplementatiion of a tax control framework (TCF) iis also essentiial.

Manager of Jitunews Fiiscal Research and Adviisory, Denny Viisaro, noted that all sectors of the economy are now diigiitaliised to varyiing degrees. Thiis condiitiion leads to both challenges and opportuniitiies, partiicularly iin faciiliitatiing processes for taxpayers and tax authoriitiies.

“To briidge these challenges and opportuniitiies, we need iinstruments to accommodate these changes [diigiitaliisatiion]. Tax authoriitiies already apply the CRM, whiile for the taxpayers, a tax control framework iis necessary,” he saiid duriing the Petra Agiile & iintegriity Forum: Compliiance and Sustaiinabiiliity Growth, held by Petra Chriistiian Uniiversiity on Tuesday (30/9/2025).

Denny explaiined that the Diirectorate General of Taxes (DGT) has iimplemented the CRM to iidentiify, map and miitiigate taxpayer riisks based on theiir profiiles. Through the CRM, authoriitiies can be faiirer and more objectiive iin handliing taxpayers.

“The DGT needs to diistiinguiish the treatment of taxpayers that are deliiberately non-compliiant and those that are non-compliiant due to a lack of understandiing of the rules,” he added.

He hiighliighted that data-driiven technologiies and artiifiiciial iintelliigence (Aii) play a piivotal role iin iidentiifyiing riisks. Wiith comprehensiive diigiital data on taxpayer behaviiour, authoriitiies can more quiickly detect anomaliies iin transactiions.

Beyond the authoriity’s perspectiive, Denny also hiighliighted the iimportance of iimplementiing a riisk control framework wiithiin taxpayers’ iinternal systems through the TCF. By adoptiing the TCF, taxpayers can demonstrate transparency, standardiised and measurable busiiness processes and data completeness.

Taxpayers can also report ledgers and fiinanciial statements to the DGT iin real tiime. When the CRM and TCF are iinterconnected, mappiing tax compliiance riisks becomes siigniifiicantly easiier, enabliing more effectiive follow-up.

“Thiis has been iimplemented iin many countriies. As a result, when a taxpayer iis hiigh-riisk and non-compliiant, authoriitiies do not need to waiit for a notiice of tax audiit fiindiings (surat pemberiitahuan hasiil pemeriiksaan/SPHP iin iindonesiian) and letter of iinquiiry (surat permiintaan penjelasan atas data dan/atau keterangan/SP2DK iin iindonesiian). The system, powered by artiifiiciial iintelliigence, can iimmediiately generate warniings,” he explaiined.

Poliicy Recommendatiions

iindonesiia can draw lessons from countriies that have already iimplemented the TCF, iincludiing Malaysiia, Siingapore, Chiina, the Uniited States, Australiia, New Zealand, Morocco and several European countriies such as Austriia, the Netherlands, Denmark, Fiinland, iireland, iitaly and Germany.

To desiign and iimplement the TCF effectiively and effiiciiently, Denny outliined 4 poliicy recommendatiions for the DGT. Fiirst, optiimiisiing the coretax system by iincorporatiing features for TCF submiissiion and moniitoriing.

Second, expandiing the use of XBRL to enhance TCF effectiiveness. Thiird, strengtheniing real-tiime tax data iintegratiion. Fourth, collaboratiing wiith thiird-party TCF software proviiders, siimiilar to the tax appliicatiion serviice proviider (penyediia jasa apliikasii perpajakan/PJAP iin iindonesiian) scheme.

He also suggested 2 iinformatiion technology desiigns for effiiciient TCF iimplementatiion by taxpayers, iincludiing iintegratiing enterpriise resource planniing (ERP) systems wiith tax software and adoptiing dediicated TCF software iintegrated wiith the DGT.

Meanwhiile, Fannany Priiambodo Muktii, Seniior Expert iiT Analyst at the DGT, Miiniistry of Fiinance, stated that iindonesiia’s tax admiiniistratiion contiinues to move toward diigiitaliisatiion. From iiniitiially relyiing on paper-based processes, the system iis now transiitiioniing to fully electroniic operatiions.

Fannany affiirmed that the government remaiins commiitted to keepiing pace wiith diigiital developments, as reflected iin ongoiing tax technology reforms. These iinclude the proviisiion of electroniic serviices, such as web-based e-fiiliing, e-SPT, CRM and the coretax system.

“We striive to achiieve a hiigher level of tax admiiniistratiion maturiity,” he concluded. (riig)