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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Main Author: McMillan, Jim
Format: Journal Article
Language:English
Published: 2024
Online Access:https://www.jausttax.com.au/volume-25-issue-1
http://hdl.handle.net/20.500.11937/94843
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author McMillan, Jim
author_facet McMillan, Jim
author_sort McMillan, Jim
building Curtin Institutional Repository
collection Online Access
description 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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spelling curtin-20.500.11937-948432024-09-26T03:06:11Z TAX AUDIT EFFECTIVENESS AND REVENUE COLLECTION OUTCOMES IN INDONESIA McMillan, Jim 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. 2024 Journal Article http://hdl.handle.net/20.500.11937/94843 English https://www.jausttax.com.au/volume-25-issue-1 fulltext
spellingShingle McMillan, Jim
TAX AUDIT EFFECTIVENESS AND REVENUE COLLECTION OUTCOMES IN INDONESIA
title TAX AUDIT EFFECTIVENESS AND REVENUE COLLECTION OUTCOMES IN INDONESIA
title_full TAX AUDIT EFFECTIVENESS AND REVENUE COLLECTION OUTCOMES IN INDONESIA
title_fullStr TAX AUDIT EFFECTIVENESS AND REVENUE COLLECTION OUTCOMES IN INDONESIA
title_full_unstemmed TAX AUDIT EFFECTIVENESS AND REVENUE COLLECTION OUTCOMES IN INDONESIA
title_short TAX AUDIT EFFECTIVENESS AND REVENUE COLLECTION OUTCOMES IN INDONESIA
title_sort tax audit effectiveness and revenue collection outcomes in indonesia
url https://www.jausttax.com.au/volume-25-issue-1
http://hdl.handle.net/20.500.11937/94843