Sunset Policy

Sunset Policy
Please tell us, what the meaning of SunsetPolicy is.
Sunset Policy is a giving taxation facility policy , only applied for the year of 2008, that is to do the abolition of the taxation administrative penalty including interest as it is regulated within article 37A of the consolidation of law of the Republic Indonesia number 28 of 2007 concerning general provisions and tax procedures.
….hopefully, this policy can be a starting point to grow up the trust between the government and the citizens (tax payers). And for our information, at the beginning this policy had triggered many controversies but as the time passed all parties can understand what this policy held for, they positively responded it and just for accommodating their exciting participation, now DGT has prolonged this policy up to February 2009.
What is actually the background of this policy?
Law number 28 of 2007 enables The Directorate General of Taxes to gather the taxation data and to obligate government institutions, boards, associations and others parties to give the data to DGT. This stipulation has enabled DGT to know the untruth of the taxation obligation fulfillment conducted by the citizens. To evade the citizens from the determination of the taxation penalty rising if they do not administer their taxation obligation well, DGT in the year of 2008, gives an enormous opportunities to the citizens to start fulfilling their taxation obligation honestly with no coercion and to do it well.
….DGT hopes for the frankness from the citizens in reporting their tax obligation within their tax written, so that by applying this, and as it is expected that way, by having this opportunity, the citizens are allowed to report their unreported data by reporting it in correction tax written. Through this mechanism, the side effect this state will gain is the increasing of the revenue from taxation, tax income exactly and else that DGT will have plenty of better data.
As you informed before, that the main goal of this policy is to mending the taxation data through the correction reporting, with no administrative penalty for those doing so, apparently, what for the data will be used by DGT? and how does DGT cope with many opinions remarking that this policy is just the same with the deceit to trap the citizens later?
DGT has an authority to issue Tax Payer Identification number(NPWP) directly without the taxpayers’ acknowledgement when known that they are already qualified both subjectivity and objectivity requirementsbut they do not do registration, the clear and complete data will help DGT own sufficient proves to do so. So that do not expect for an escape, they will be detected.
And for our information, sunset policy is not a trap, even this program shows the trust given by DGT to the tax payers , there is no way to do a trapping since all the decrees and stipulations formed to create a law protection and easiness for the taxpayers to complete their right and obligation in taxation. And the vital thing is their fairness, frankness and clearness in filling and reporting their tax written or its correction. It is clear that the tax written submitted to DGT cannot be used as a base to issue the notice of tax assessment.
…after the sunset policy ends up, DGT will intensify tax investigation based on data it has, and if it is proved that the taxpayers do a cheat in their tax written, it will become DGT’s duty to investigate and punish them withpenalties, so if you all want to have a deep sleep indeed, please fill your tax written correctly, completely and clearly.
One more question, who can apply for Sunset Policy?
Personals who haven’t had TIN yet, who are in the year of 2008 heartily register themselves to own it and report their annual tax written for the taxable year of 2007 and the previous years no later than March 31, 2009.
Personals and corporate taxpayers who already have TIN priorto the year of 2008, delivering S their correction annual tax written for the taxable year of 2006 and the previous years to report the uncalculated and the unreported income within the previous tax written.