Two Important Things for Taxpayers Regarding Tax Crimes

Law No. 28 of 2007 concerning the third amendment to law number 6 of 1983 concerning general provisions and tax procedures (Law No. 28 of 2007) is a general rule regarding taxation that, among others, regulates prohibited acts and is subject to criminal penalties (punishments) for those who violate them.

In fact, taxpayers must have a good understanding of the tax criminal provisions based on Law No. 28 of 2007 in carrying out their taxation rights and obligations by considering the nature of the tax crime (punishment) that causes suffering (economic, psychological, physical) and can be imposed in the criminal justice process by tax law enforcement officers.

Thus, taxpayers need to pay attention to the following:

Tax Criminal Provisions That Apply and Are Binding Even If You Pretext That You Don’t Know These Provisions or If You Don’t Understand Tax Administration

For example, the provisions of Article 39 paragraph (1) of Law No. 28 of 2007 stipulate as follows:

Anyone who willfully:

  1. fails to register for a Taxpayer Identification Number or fails to report his business in order to be confirmed as a Taxable Entrepreneur;
  2. unauthorized use or misuse of the Taxpayer Identification Number or Taxable Entrepreneur Confirmation;
  3. fails to provide a notification letter;
  4. submit an incorrect or incomplete notification letter and/or information;
  5. refuse to conduct the examination mentioned in Article 29;
  6. display books, records, or other documents that are false or falsified as if they were true, or that do not accurately describe the situation;
  7. failing to keep books or records in Indonesia, failing to exhibit or lend books, records, or other documents;
  8. does not keep books, records, or documents that serve as the foundation for bookkeeping or recording, as well as other documents, including the results of data processing from electronically managed books or online application programs in Indonesia, as specified in Article 28 paragraph (11); or
  9. does not hold or deposit taxes withheld or collected;

So as to cause a loss to state revenue, shall be punished by imprisonment for a minimum of 6 (six) months and a maximum of 6 (six) years, as well as a fine of at least 2 (two) times the amount of tax payable that is not or is underpaid, and a maximum of 4 (four) times the amount of unpaid or underpaid tax payable.

If you (the taxpayer) argue that you do not understand the provisions of Article 39 paragraph (1) of Law No. 16 of 2009 as mentioned above, or if you do not understand tax administration, this law will still apply and be binding on you.

Furthermore, the provisions of Article 39 paragraph (1) a quo are types of formal offences that focus on the consequences of your failure to carry out your tax obligations, and the state has lost due to your failure to do so. Because at this point, taxpayers are generally trapped in their own assumptions.

Strictly speaking, you can be threatened as a criminal with a type of imprisonment (physical) for a minimum of 6 (six) months and a maximum of 6 (six) years, as well as a monetary fine for a number of tax debts that can be collected.

What Should You Do If You Are Under Investigation for Tax Fraud?

However, taxpayers, in addition to having tax obligations, also have tax rights based on positive law applicable in the Indonesian legal system. However, it is possible that taxpayers are reluctant, do not know where to seek legal advice, or may be afraid to exercise their legal rights.

So, if you are in the process of investigating a tax crime and are being investigated by a tax investigator, your legal rights are guaranteed and must be respected, including the right to legal assistance and the right to access justice through one or more advocates to provide legal advice and offer legal solutions to your situation.

You can access professional legal services from Ario, Basyirah & Partners Law Firm below:


Hotline: +62811-8104-540

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