Effectiveness of Imposition of Tax Sanctions on the Compliance of Individual Taxpayers in Reporting SPT in Jayapura City

Herry M Polontoh ,Tri Yanuaria

doi:10.7176/jlpg/83-17

Abstract

This research is entitled as Effectiveness of Imposition of Tax Sanctions on the Compliance of Individual Taxpayers in Reporting SPT (Notification Letter) in Jayapura city. It aimed to see how effective the imposition of tax sanctions on the compliance of taxpayers in reporting SPT in Jayapura city due to the new policy stated that starting from 1 January 2008, taxpayers who have not reported their SPT or have reported their SPT containing incorrect or incomplete information and could disadvantage the country would not be punished with criminal sanctions. Instead, they will be punished with administration sanction if such failure was conducted for the first time. The mentioned administrative sanction is equal to 200% of the underpaid tax. This research used normative juridical and empirical juridical methods which collected data in the field and connected it with the relevant theories on the effectiveness of law enforcement. This research found that KPP Pratama Jayapura have not optimally enforced the administrative sanction in the form of fine towards individual taxpayers who have not reported their SPT (notification letter) due to the reason that in releasing SPT, Account Representatives (AR) still prioritize taxpayers who bring greater income to the state considering that the performance burden of AR is affected by the target work load. Based on the data of KPP Pratama Jayapura, it could be concluded that the level of compliance of the taxpayers in reporting their annual SPT from 2015 to 2017 did not increased as there is legal uncertainty in the imposition of sanctions towards taxpayers which makes disobedience from taxpayers. The factors that inhibit the implementation of sanctions are (1) the absence of awareness and low knowledge of taxpayers regarding their tax obligations; (2) the range of control between the residence of the taxpayer with the tax service office which results in the need for a large budget in the case of notification / collection of tax administration fines; and (3) taxpayer identity is invalid which make it difficult for officers to send the SPT to taxpayers. Researchers suggested that a model for applying tax sanctions is required in order to conform to the principles of tax law. Keywords: Imposition, Tax Sanctions, Annual SPT, Jayapura DOI : 10.7176/JLPG/83-17 Publication date : March 31 st 2019

Highlights

Tax is a form of contribution to the country which could be forced to the taxpayers to be paid in accordance with the regulation without direct feedback, could be directly pointed, and and aims to fund general expenses which are related to the government task1.Reporting annual income tax (PPh) SPT could be exercised in two ways
The first one is by directly come to the KPP Pratama Jayapura, through Account Representatives (AR) which are tasked to perform supervision on the compliance of the taxpayers, provide guidance and instruction as well as consultation on techinaclity of the tax to the tax payers, arrangement of tax payers’ profiles, tax payers working analysis, tax payers’ data reconciliation in terms of intensification and conduct evaluation of appeals based on applicable provisions
The research methodologies that were used in this research are the normative juridical and empirical juridical methods that focused on literature research and data from empirical research which consists of interview with 4 staffs (AR and Department of Data Processing) of KPP Pratama Jayapura and 10 individual taxpayers in University of Cendrawasih as well as 10 people in State-Owned-Enterprises

Summary

Introduction

Tax is a form of contribution to the country which could be forced to the taxpayers to be paid in accordance with the regulation without direct feedback, could be directly pointed, and and aims to fund general expenses which are related to the government task. Reporting annual income tax (PPh) SPT could be exercised in two ways. It does not require much time to report the SPT. It is easier for the taxpayers as they could report their SPT anywhere. It could not be denied how difficult collecting the tax is for the government as many taxpayers have not complied in either paying or reporting their SPT. Tax is one form of income for the country which will be used for development with aims for welfare and prosperity of the people

Methods

Results

Conclusion