TAX AUDIT EFFECTIVENESS AND REVENUE COLLECTION OUTCOMES IN INDONESIA
This article considers links between Indonesia’s tax collection performance and the design and operation of its tax compliance system, through a study of the tax audit practices and procedures of Indonesia’s tax authority (the Directorate General of Taxation). The article considers the distort...
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| Format: | Journal Article |
| Language: | English |
| Published: |
2024
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| Online Access: | https://www.jausttax.com.au/volume-25-issue-1 http://hdl.handle.net/20.500.11937/94843 |
| Summary: | This article considers links between Indonesia’s tax collection performance and the design
and operation of its tax compliance system, through a study of the tax audit practices and
procedures of Indonesia’s tax authority (the Directorate General of Taxation). The article
considers the distortionary effect of some features of Indonesia’s tax compliance approach,
under which audits tend to be focused largely on taxpayers who are already compliant, and
audit activities are narrowly focused and not risk based. The article also considers ways in
which Indonesian tax authorities could expand tax audit coverage and modify audit
procedures, and thereby increase the effectiveness of their compliance activities in the future,
leading to improved revenue collection outcomes. |
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