The History of Taxation Administration System
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2 Regulation field, by making amendments to the Taxation Law From taxation law aspects, it keeps try to create and develop
juridical formality and material of taxation. It can be done by making adjustment and regulation regarding to the current developments in life
of society, state, or economic activity. The reason is a rule, basically, should be able to follow and being followed by the life of society,
state, and stakeholders. If not, then the regulation could be a barrier even contradictory, so that the achievement of the targets can be
incompatible with what is expected. 3 Supervision field, creating bank of data of the national taxation
In the field of supervision, it is built a national data bank of taxation as an effort to revitalize the implementation of self-assessment
system with the official assessment in the calculation and determination of the magnitude of the tax payable, as provided for in
the taxation law. In addition, the construction of data bank of national taxation is also aimed to undertake extensification and intensification
activities of taxation. Through the activities of extensification, based on data and information that it is ordered for people who has been
qualified to register as a Taxpayer to obtain a Tax Identification Number. For personal subject, the limit is for those who have obtained
the above nontaxable income either already married or not married. After the society know this appeal, and apparently people have not
enrolled themselves as Taxpayer correlating with self-assessment
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system, to make it balance, so it publish officially Tax Identification Number official assessment. Through extensification, the expansion
of the tax base in which there is the increase the number of taxpayer, especially personal taxpayer. Under such conditions, it does
intensification activities to realize aspect of justice. Along with that, the intensification of activities carried out various efforts of activity.
One of those through the optimization of the taxation data utilization model OPDP.
According to the Summer, Linn and Archarya quoted by Marcus 2005: 15, the reason to commit tax reform are:
1 As part of the structural adjustment, tax reform is used to reduce the distortion of economic stimulation and the occurrence of the
deficiency and inequity in the allocation of resources. 2 As part of efforts to stabilize the economy, tax reform, together
with state expenditure cutting, at the same time to generate revenue in a rational without distortion, fair and sustainable.
According to the Bird and Jantscher quoted by Marcus Gale 2005: 15, tax policy changes without being supported by the tax
changes is not meaningful. Changes in the field of taxation must be in line with its administrative capacity, because the administration
of taxation is a policy in the field of taxation which has inseparable relationship.
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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