Benchmarking Tax

JAKARTA: After completing a total of 80 sector classifications benchmarking effort (Klu) or the business sector, the Directorate General of Taxation is now added 20 more Klu Klu bringing the total to 100.

Addition of 20 new Klu is determined by the DGT circular letter dated October 20, 2010 numbered SE-105/PJ/2010 on Stipulation ratio of total bencmarking stage IV.

"Ordered to the heads of regional offices to monitor the implementation of the Directorate General of Taxes for total utilization of benchmarking by the tax office," said Director General of Taxes in SE Mochamad Tjiptardjo Business was obtained yesterday.

The ratio of the total benchmarking is a tool or a reference to assess the fairness of financial performance and fulfillment of tax obligations by the taxpayer (WP) of these business sectors. Determination of the ratio of the benchmark using taxation data 2005-2007. The results of this benchmark can not be used directly as a basis for issuing an assessment.

Determination of the ratio of the total benchmarking carried out over 14 ratio of gross profit margin, operating profit margin, pretax profit margins, corporate tax to turnover ratio, net profit margin, and dividend payout ratio.

Furthermore, the ratio of input VAT on sales, payroll expenses to sales ratio, the ratio of interest expenses to sales, rental costs to sales ratio, depreciation expense to sales ratio, the ratio between the other input to sales, ratio of outside business income to sales, and the ratio of external costs business with sales.

Previously, the Directorate General of Taxation has set a benchmark ratio of total of 20 Klu through SE No. 96/PJ/2009 on 5 October 2009 concerning the ratio of the total benchmarking and utilization guidelines. Some 30 other business sectors regulated by the DGT Circular No. 11/PJ/2010 about determining the ratio of the total benchmarking Phase II, dated February 1, 2010.

Meanwhile, the determination of the ratio of the total benchmark of 30 set by the SE 68/PJ/2010 Klu on Stipulation ratio of total benchmarking phase III dated May 27, 2010.

Business Process Transformation Director General of Taxation Robert Pakpahan explains DG Taxation will continue to increase the number of business sectors which made his total benchmarking. "What matters more, the use of benchmarks that are already available will be increased again to facilitate monitoring of compliance."

According to him, it also will evaluate whether the utilization ratio of the total benchmarking data are used appropriately by the KPP.

"If it is not used optimally, we help make equipment including monitors to determine utilization. If misused, will be dealt with in accordance with the appropriate error handling of abuse by others, "he added.

Observers from the Tax Center Tax UI Tax DG Danny Septriadi reminded to be careful in setting the benchmark for the ratio of the total at a later date did not result in a tax dispute.

"Preparation of the database itself must be careful. Directorate General of Taxation should be able to ensure that it [the ratio of total benchmarking] is really accurate. Data for comparison should be local, do not use comparable overseas. "

He also warned that the ratio of the total benchmarking data is only an indicator of the inception of the tax violations that can not be used as a basis to issue an assessment. "Need to follow up again to prove any such indication."

However, determining the ratio of the total benchmarking is an activity which is fine by the Directorate General of Taxation in order to monitor taxpayer compliance.
Listen

Source : bisnis.com, 8 November 2010