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Table 2.2 Differences between the Old system and the New System
OLD SYSTEM NEW SYSTEM
Tax office
organization structure is formed by type of
tax, there is no clear separation of functions because it is
implemented in one section according to type of tax
Organization of modern tax service office is formed by a function which
leads to improved services to the public taxpayer of all types of
taxes.
Monitoring and
services function have not been effective
due to lack of specialized staff to perform these functions.
The existence
of supporting
specialized staff or selected AR service, and work professionally as
services and supervision to the taxpayer.
Inspection management because it is in two units of the tax
inspection so that coordination is not good.
Inspection management is more efficient and effective because it is
in one unit of the human resources unit specialized in certain sectors so
that coordination function is better.
Taxpayer do their taxation obligation in the form of
payment and manual reporting by using the hard copy so that it
is less practical Utilization in development and
advances information technology. The facilities include: website, call
center, complaint center, e-filing, e- SPT, online payment.
Process of Execution of the work for the service of process,
supervision, and inspection of the less efficient and far too
bureaucratic, so that the relative high cost of compliance.
The process of implementation of the work less efficient and reduce
bureaucracy so
that cost
of compliance is relatively low. With
existence of AR, the handling of various aspects of taxation will be
monitored more quickly.
Source: Iklima Pila Sopia 2008
D. Dimension of Application of Modernization of Taxation Administration
System
The application of modern taxation administration system through programs and activities in the framework of the reform of the middle-term tax
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administration is explained in the dimensions of Modern Taxation Administration System as follow:
1. The Organizational Structure
Organizational structure is the element that relates to the role of the patterns that have been determined and the relationships between roles,
allocation of activities to subunits-separate, the distribution of authority between administrative positions, and formal communication network.
Abdul Rahman:2010:213. a. Establishment of the Organization by Function
As a manifestation of revamping in the function of services, supervision and inspection, organizational structure which is based on
the decision of the Minister of Finance No. 443KMK. 012001 is drawn up according to the type of tax, where income tax and others
VAT or other indirect taxes served in tax office, while the Land and building Tax and the Fees for Acquisition of Rights to Lands and
Buildings BPHTB served by a of Land and Building Tax Services Office.
By implementing the modern taxation administration system, organizational structure is designed with paradigm based on clear
separation of functions between regional offices and tax offices, where tax offices are responsible to carry out the functions of the services,
supervision, billing and inspection, while the regional offices are
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responsible to carry out the function of supervision of tax offices operational activities, objection and appeal, and investigation.
b. Specification of Duty and Responsibility
In the organizational structure, there is specification of duty and
responsibility, such as:
1 Account Representative. The appointment of an Accounts Representative is special to serve and oversee fulfillment of
taxation obligations of taxpayer directly. With the distribution of tasks adjusted to the business group of taxpayer, Account
Representative is responsible for providing answers to any questions asked by taxpayer effectively and professionally,
especially on taxpayers Account for all types of taxes, the progress of the inspection process and restitution, interpretation
and the affirmation of a rule, the changes of data of the taxpayer ’
identity, the action of tax billing and examination, progress of process on objection and appeals, changes of regulation relating to
the taxation obligation of the taxpayer.
2 Examination of tax is only conducted by functional examiner with the allocation of functional examiner is adjusted to the level of
examination risk and conducted technical training which supports professionalism of examiner according to the of the business
group of taxpayer.
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3 Specialty of other employees such as tax executor and information
technology programmer.
c. Completing and Perfecting the Taxation Information System
Implementation into an Integrated Taxation Administration System
Taxation Information system SIP is developed into an Integrated Taxation Administration System SAPT controlled by the
case management in the process of monitoring systems of taxation administration refers to the automation of the office include services,
sequencing supervision, supervision of executor and reporting
designed in accordance with the current legislation . d. Routine monitoring through a Taxpayers account
Transparency of services and fulfillment of taxation obligations of Taxpayer are supported with the Taxpayers Account that serves to
record automatically any changes that occur to the rights and obligations, objections, balance transfer, notification letter, and other
tax documents so that it eases to oversight of taxation rights and
obligations for each of the taxpayer. e. The Mechanism of supervision of services and examination
Setting standard
performance and
taxation services,
implementing a code of ethics for Civil Servants of tax officer and the establishment of Code of Ethic Committee as well as cooperation with
National Ombudsmen Committee will complete the set of surveillance for service and inspection.
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2. The Organizational Procedures
Organization procedures relates to process of communications, decision making, achievement selection, socialization and career.
Discussion and an understanding of organizational procedures are based on the activity of the organization that is conducted regularly. Abdul
Rahman:2010:213.
a. One Door Services of Account Representative The appointment of the Account Representative which is
responsible specifically to serve and supervise the taxation administration of some Taxpayer by developing the concept of one
door services so that it can reduce the critical interface between Taxpayer with a tax officer who likely can lead to negative excesses.
Account Representative also handles exemption certificate, tax deposit balance transfer, ruling and publishing legal product.
b. Simplification of administrative procedures and improvement of the standards of time and quality of service and tax inspection
Activities performed include: i simplifying the notification letterSPT, ii accelerate the process of resolving the objections and
appeals of tax products, iii reinforcement of the Taxpayer, iv review the criteria of levied taxpayer to reduce he request for
restitution, v reviewing the obligation of inspection upon each Annual Tax Overpayment Letter SPT LB and speed up the restitution
