The Society Directorate General of Taxes

13 Some understanding of the tax function expressed above it can be concluded that the definition of tax functions are: a. As a source of state revenue, taxation is to finance the state expenditure. Taxes are used for routine expenditure such as personnel expenditures, material expenditure, maintenance, etc. b. With the regulatory function, taxes can be used as a tool to achieve a goal. For example, in order to attract capital investment, either domestic or abroad, it is given the wide range of on-site tax relief. In order to protect domestic production, the government set high import duties for foreign products. c. Taxes that have been withheld by the state will be used to finance all of the public interest, as well as to finance the construction so that it can create jobs, which in turn, will be able to increase the peoples income. 3. The Principle and Basic of Tax Levy To achieve the purpose of the tax levy in the alternative levy, based on the principles of tax levy, so that there is harmony between the tax collector with the purpose and basis. Adam Smith in his book , “ An Inquiry Into The Nature And Causes Of The Wealth Of nation , quoted by Santoso Brotodiharjo in his book Pengantar Ilmu Hukum Pajak 2003: 27, there are four basic principles of the tax levy, namely: a. Equality The principle of the balance of the abilities or the principle of fairness. 14 b. Certain The principle of legal certainty. c. Convenience of Payment The basis of the on time tax levy or the principle of pleasure. d. Efficiency The tax should be done economically, do not collect taxes over income taxes. A basic understanding of some of the tax basis expressed above it can be concluded that the fundamental basis of the poll tax is: a Tax Collection performed by the State should be in accordance with ability and income of taxpayer. The State should not act indiscriminately against taxpayer. b All tax levies should be based on the tax legislation, so, for those who violate the law will be subject to sanctions. c The tax must be withheld at the right time for taxpayer, for example at a time when the taxpayer receives salary or when the taxpayer receives a bonus. d Costs of tax levy must be done efficiently, do not get tax levy costs going higher than the results of the tax levy.

4. System of Tax Levy

System of tax levy can be distinguished into three parts quoted in the book of Siti Resmi, 2009: 11-12, i.e.: