Summary of Circular Letter of the Director General of Taxation Number SE-01/PJ/2020 regarding Repayment of Tax Payable and Tax Collection Charges that Become Taxpayers Obligations for Corporate Taxpayers in the Context of Warrant Based Tax Collection
Tax collection is conducted if the taxpayer does not repay tax payable and tax collection charges. Officers can carry out tax collection measures in accordance with the provisions of laws and regulations in tax collection sector, through the following stages:
(i) issuing a Reprimand Letter or other similar letters,
(ii) conducting the collection at once and simultaneously,
(iii) notifying a Warrant,
(iv) seizing goods belonging to the taxpayer,
(v) selling the seized goods belonging to the taxpayer,
(vi) proposing a precaution, and
(vii) conducting detention.
The tax collection stage is conducted towards the taxpayer by considering the order of priority as follows:
(i) corporate taxpayer concerned,
(ii) management of the corporate taxpayer, and
(iii) shareholder or capital owner.
The taxpayer must repay the tax payable in the amount of the obligation, namely:
(i) the entire value of tax payable for corporate taxpayer and management of the corporate taxpayer, including the management as referred to in Article 32 paragraph (4) Law Number 6 Year 1983,
(ii) proportional to the value of tax payable based on the portion of shareholding or capital for the taxpayers who is a shareholder or capital owner of the corporate taxpayer, and is not included in the management as referred to in Article 32 paragraph (1) letter a and/or paragraph (4) of Law Number 6 Year 1983, and
(iii) tax collection charges.
This circular letter comes into effect on 16 January 2020.
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