Taxation obligations of government institutions in Indonesia: Is it mandatory for government institutions in Indonesia to engage with taxable entrepreneurs?

Abstract

This article examines the mandatory requirement for government agencies to transact with taxable entrepreneurs and its significant implications. It explores the impact of errors made by government agencies, acting as tax collectors, when engaging with non-compliant partners. The violations of regulations and potential consequences on state revenue are discussed, emphasizing the substantial influence of tax policy on the national economy. The study aims to provide an analysis of the obligations of government agencies as tax collectors and their effect on state revenue, along with the facilitation of business operations for Small and Medium Business Taxpayers (SMBTs). This article examines the mandatory requirement for government agencies to transact with taxable entrepreneurs and its significant implications. It explores the impact of errors made by government agencies, acting as tax collectors, when engaging with non-compliant partners. The violations of regulations and potential consequences on state revenue are discussed, emphasizing the substantial influence of tax policy on the national economy. The study aims to provide an analysis of the obligations of government agencies as tax collectors and their effect on state revenue, along with the facilitation of business operations for Small and Medium Business Taxpayers (SMBTs).