Page 11 - Indonesia Taxation Quarterly Report (Q2-2020)

Executive Summary

have moved from web-based to Hence, it is important that the tax
smartphone-based business processes, authorities not only focus on the use
making it easier for taxpayers to interact of new and cutting-edge technologies
or consult with tax officials. Moreover, but also prepare anticipatory measures
another aspect worth considering concerning the consequences and
is reducing the use of currency in all conflicts arising due to the use of these
business processes, from registration to technologies. Additionally, adjustments
payment processing. to the procedures during the transition
period cannot be taken for granted. In
Further, the use of advanced analytics addition to requiring reliable human
through machine learning in Indonesia resources, these adjustments require
needs to be improved in implementing infrastructure that can support the
the tax compliance framework. With resolution of problems arising from
the new technology, the DGT can changes in policy procedures and data
automate business processes, ranging that are not fully integrated.
from the taxpayer registration process,
processing notices, tax returns, and To conclude, the tax system
other tax documents, processing tax transformation calls for excellent
payments, supporting auditing and cooperation and coordination among
billing, to the taxpayer accounting taxpayers, tax consultants, tax
function. authorities, and software providers to
establish a stable tax system. Each
In other words, digitization is ought of these parties has an equal role in
to offer convenience for taxpayers in promoting stability and consistent
obtaining information or fulfilling their innovation in the world of taxation.
tax obligations. This transformation, Last but not least, tax administration
however, may frequently lead to new modernization should facilitate the
problems that may the original purpose development of sustainable tax
of these changes. compliance, which is driven by mutual
trust, transparency and certainty.

vii