12
d. In the payment of taxes, it could not be shown any individual contra-
achievement by the Government.
For example, people who keep paying taxes of vehicles will go through the same quality path as people who do not pay tax on
vehicles.
2. Function of Taxation
Expressed by Ilyas 2007: 10-11 in Rapina, Jerry and Yenni
2011:5 there were four tax functions, namely:
a. Budgeting Function is a function that is located in the public sector, namely a function for collecting tax money as much as possible in
accordance with the laws in effect at the time will be used to finance the expenses of the State, and when there is a surplus, it will be used as
government saving for government investment.
b. Regulatory Function which is a function that the taxes will be used as a
tool to achieve certain objectives that is outside of financial aspect.
c. Democracy Function is a function which is one of embodiment or manifestation of the gotong-royong system, including the activities of
the government and the construction for the benefit of mankind. This function is often associated with a persons right to obtain the services
from government when he has performed its duty to pay taxes, if the
government does not give good service, taxpayer can complain it.
d. Distribution Function is a function that a greater emphasis on elements
of equity and justice in society.
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.
