This study aims to provide a brief and analytical reporting on IFRS 15 adoption in Indonesia into PSAK 72 related to Income Tax and Value Added Tax issues that may arise. We use literature studies to collect data and strengthen it with in-depth interviews of taxpayers, PSAK standard setter, tax consulting practicioner, and Directorate General of Taxes official. Our findings demonstrate the need for entities to consider taxation issues that may arise due to revenue recognition developments. Unconformity that may arise between accounting and tax requires the entity to explain these differences by documenting them early. Taxpayers need to underline the burden of compliance arising from the IFRS 15 adoption, which is the compliance costs in the form of mark-to-market and realization taxation. In implementing PSAK 72 to align with the realization principle in the Income Tax Law, the taxpayer compliance cost will increase by making detailed fiscal reconciliations. From the VAT perspective, the Tax Paying Entrepreneurs need to make contract adjustments with the counterparty to ensure that the time of supply is the basis for determining the VAT payable. This research presents the gap between accounting and taxation so that it can be a lesson for application in other countries.
The convoluted issuance of permits for opening a new business or the daily process of running a business due to overlapping regulations is one of the reason for the government to take an alternative route in the form of the Omnibus Law, which can replace several rules at once. However, suppose that the alternative option through the omnibus law can work as expected, but it does not mean that every process will be appropriate with the applicable regulations. Using a qualitative approach, this study aims to analyze the fulfilment of open governance principles in omnibus law's promulgation process. Our analysis shows that Indonesia's omnibus law-making process in 2020 still ignores the principle of openness mandated under Law Number 12/2011. The government's neglectful attitude, especially concerning open data and open process, indicates that the government has not paid enough attention to the open governance principle.
The effectiveness of the e-tax system in encouraging tax compliance has been largely unexplored. Thus, the current study aims to examine the interrelationship between technological predictors in explaining tax compliance intention among certified tax professionals. Based on the literature on information system success and tax compliance intention, this paper proposed an expanded conceptual framework that incorporates convenience and perception of reduced compliance costs as predictors and satisfaction as a mediator. The data were collected from 650 tax professionals who used e-Filing and 492 who used e-Form through an online survey and analyzed using hierarchical multiple regression. The empirical results suggest that participants’ perceived service quality of e-Filing services and perceptions of reduced compliance costs positively influence users’ willingness to comply with tax regulations. The latter predictor is also, and only, significant among e-Form users. The empirical results also provide statistical evidence for the mediating role of satisfaction in the relationship between all predictors and tax compliance intention. This study encourages tax policymakers and e-tax filing providers to improve their services to increase user satisfaction and tax compliance.
Uber is a global pioneer in the sharing economy platform entitled ride-hailing. It started to enter the Asian market in 2013-2014 with various community responses in each region. In March 2018, Uber withdrew from the competition in Southeast Asia after being acquired by one of the dominant players in the region, Grab. In connection with Uber's failure to operate its business in the region, this paper discusses Uber's business model, business expansion, competition in the market, and the factors that led to Uber's failure in the Southeast Asian market. To comprehensively describe the developing context, we used a qualitative method with a systematic data collection approach from literature reviews in conducting this study. This study emphasizes that large funding supports do not guarantee the success of business operations in a more globalized setting. Different market characteristics require different approaches. The case of Uber's failure in the Southeast Asian market, even though it was supported by large funds to "Uberize the entire world," proves that the characteristics made more "localized" are more likely at a certain point in time to survive. This study also underlines some learning points from the dominant factors causing the failure of Uber's business operations in the region that require immediate adaptation: non-conformity with market preferences, challenges from prevailing policies and infrastructure issues, and strong competition from local competitors.
This study analyzes income tax and value-added tax (VAT) issues on lease transactions after IFRS 16 convergence in Indonesia into PSAK 73. The data collection is through in-depth interviews and literature review. We interviewed informants selected purposively. We also used secondary data from literature studies to enrich the analysis. This study concludes that the tax authorities need to make tax policies that can provide legal certainty. The new tax regulation needs to accommodate a more precise direction of the policy. Among the three available options, this study favors realization taxation as a more appropriate option for Indonesia's current situation, other than mark-to-market or hybrid taxation. To narrow the practical gap between accounting and tax, this study recommends that tax authorities initiate a discussion with relevant stakeholders to prevent potential tax disputes in the coming years. Tax authorities need to notice some issues with withholding tax when the lessee records interest expenses as well as transfer/delivery issues causing VAT payable when the lessee recognizes a right-of-use asset.
The Covid-19 pandemic has resulted in a problematic impact on the revenue budget of many countries, including Indonesia. However, when most tax revenues had decreased, personal income tax (PIT) in Indonesia increased. Based on this fact and using a qualitative approach, our study aims to document and analyze a Compliance Risk Management (CRM) approach used to monitor taxpayer compliance in Indonesia. This study analyzes the CRM policy using policy science methods modified according to the CRM implementation and administration scope. Our analysis was carried out primarily by linking the CRM implementation policy with the Covid-19 situation. This study concludes that tax authorities should consider implementing policy strategies under international best practices by adjusting to the current pandemic situation in Indonesia without sticking to each phase. Based on the available alternatives, the Indonesian tax authority needs to consider reconstructing its interaction with taxpayers. The orientation is to provide a stimulus for taxpayers and stay to control their level of compliance.
In Indonesia, the Statement of Financial Accounting Standards (PSAK) 1 does have guidelines about other comprehensive income (OCI). Tax issues usually arise when an entity seeks to reconcile any type of OCI with the definition of income under Income Tax Law Article 4 paragraph (1). This research aims to analyze the implication of OCI on the income tax environment in Indonesia. This study use a qualitative methodology with the data mainly acquired from literature and in-depth interviews. To guarantee that the principle of ability to pay is upheld, each components of OCI demand separate treatments. According to the findings, Indonesian income tax regulations on OCI components could be based on realization, mark-to-market, or a hybrid of these approaches. Gains and losses from financial statement translation of international business activity might be taxed through realization taxation. Hybrid taxation better serve the unrealized gains and losses of fixed assets and intangible asset changes in revaluation surplus. It is preferable to use the mark-to-market approach if the tax authorities has given its consent for the revaluation to be carried out. Realization taxation should be imposed on the remaining components as well. Some policy recommendations, as a result of our findings, for the development of future tax policies are highly encouraged.
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