Revision of Law Number 28 of 2007

Oct 13, 2025 by talynt.org 126 views

Prevention and Eradication of Tax Crimes through the Application of Law Number 8 of 2010

Tax crimes have become a significant concern for governments worldwide, including Indonesia. As the largest source of income for the country, tax crimes can cause substantial losses for the state. In this article, we will discuss the prevention and eradication of tax crimes through the application of Law Number 8 of 2010 concerning Prevention and Eradication of Money Laundering Crimes.

The Importance of Tax Crimes Prevention

Tax crimes can take many forms, including tax evasion, tax avoidance, and money laundering. These crimes often involve complex financial transactions and can be difficult to detect. However, the consequences of tax crimes can be severe, including financial losses for the state and damage to the reputation of the tax authority.

In Indonesia, the tax law has undergone several changes, with the latest being Law Number 28 of 2007. However, despite these changes, tax crimes continue to be a significant problem. The application of Law Number 8 of 2010 concerning Prevention and Eradication of Money Laundering Crimes can play a crucial role in preventing and eradicating tax crimes.

Regulation of Tax Crimes

According to Law Number 28 of 2007, tax criminal acts are regulated by detailed forms of violations, such as negligence and intentional taxpayers, as well as violations committed by tax officials. However, the current policy is inadequate in regulating precautions. This is a problem when considering the high number of violations that occur due to lack of legal awareness in the community.

The self-assessment system in taxation is considered too flexible and risk to be exploited, especially in society with a low level of taxation knowledge. In addition, in e-commerce transactions, current regulations have not received evidence of transactions in electronic form, limiting the ability of tax authority to conduct effective supervision.

Weaknesses of the Tax Law

The applicable legal system also shows the dualism of power between the Tax Court and the Directorate General of Taxes. The Tax Court is not integrated with the Supreme Court, which causes problems in fostering and implementing law enforcement. This is increasingly complicated with the existence of unclear regulations regarding the qualifications of criminal offenses in Article 37, Article 39, and Article 40 of Law Number 34 of 2000 concerning Regional Taxes and Regional Levies, where there are no strict provisions regarding acts that can categorized as a criminal offense by taxpayers or tax officials.

Prevention with the Money Laundering Law

Although the taxation law has not specifically regulates the prevention of tax violations, Law Number 8 of 2010 provides a framework that can be used. The principle of customer due diligence in this law provides steps to detect potential tax criminal acts before becoming a greater problem. By conducting a more in-depth analysis of the flow of funds and the financial activities of tax actors, tax violations are expected to be effectively prevented.

The Role of Law Number 8 of 2010

Law Number 8 of 2010 concerning Prevention and Eradication of Money Laundering Crimes provides a comprehensive framework for preventing and eradicating money laundering crimes. The law requires financial institutions to conduct customer due diligence, including verifying the identity of customers and monitoring their financial activities. This law can also be applied to prevent tax crimes, as many tax crimes involve money laundering.

Conclusion

The conclusion of this study confirms that, despite the great challenges faced in regulating and enforcing taxation law, the application of Law Number 8 of 2010 can be an important strategy in preventing and eradicating tax crimes. There is a need for a revision of Law Number 28 of 2007 to clarify the prevention aspects, as well as the need for improvements in the taxation system that supports the legal awareness of the community. Through these steps, it is expected that tax criminal acts can be minimized and the source of state revenue can be well maintained.

Recommendations

Based on the findings of this study, the following recommendations are made:

Revision of Law Number 28 of 2007: The law should be revised to clarify the prevention aspects of tax crimes.
Improvement of Taxation System: The taxation system should be improved to support the legal awareness of the community.
Application of Law Number 8 of 2010: The law should be applied to prevent and eradicate tax crimes.
Training and Education: Tax officials and the community should be provided with training and education on tax laws and regulations.
Collaboration between Tax Authority and Financial Institutions: The tax authority and financial institutions should collaborate to prevent and eradicate tax crimes.

By implementing these recommendations, it is expected that tax crimes can be minimized and the source of state revenue can be well maintained.
Frequently Asked Questions (FAQs) about Prevention and Eradication of Tax Crimes through the Application of Law Number 8 of 2010

In our previous article, we discussed the importance of preventing and eradicating tax crimes through the application of Law Number 8 of 2010 concerning Prevention and Eradication of Money Laundering Crimes. In this article, we will answer some frequently asked questions (FAQs) about this topic.

Q: What is the main purpose of Law Number 8 of 2010?

A: The main purpose of Law Number 8 of 2010 is to prevent and eradicate money laundering crimes, which can also be applied to prevent and eradicate tax crimes.

Q: What are the key provisions of Law Number 8 of 2010?

A: The key provisions of Law Number 8 of 2010 include:

The principle of customer due diligence, which requires financial institutions to verify the identity of customers and monitor their financial activities.
The requirement for financial institutions to report suspicious transactions to the Financial Transaction Reports and Analysis Centre (PPATK).
The provision for the freezing of assets and the seizure of property related to money laundering crimes.

Q: How can Law Number 8 of 2010 be applied to prevent and eradicate tax crimes?

A: Law Number 8 of 2010 can be applied to prevent and eradicate tax crimes by:

Conducting customer due diligence to detect potential tax crimes.
Monitoring financial transactions to prevent tax evasion and avoidance.
Freezing assets and seizing property related to tax crimes.

Q: What are the benefits of applying Law Number 8 of 2010 to prevent and eradicate tax crimes?

A: The benefits of applying Law Number 8 of 2010 to prevent and eradicate tax crimes include:

Reduced tax evasion and avoidance.
Increased tax revenue for the government.
Improved compliance with tax laws and regulations.
Reduced risk of money laundering and terrorist financing.

Q: What are the challenges of applying Law Number 8 of 2010 to prevent and eradicate tax crimes?

A: The challenges of applying Law Number 8 of 2010 to prevent and eradicate tax crimes include:

Limited resources and capacity of tax authorities.
Complexity of tax laws and regulations.
Limited awareness and understanding of tax laws and regulations among taxpayers.
Limited cooperation and collaboration between tax authorities and financial institutions.

Q: How can tax authorities and financial institutions collaborate to prevent and eradicate tax crimes?

A: Tax authorities and financial institutions can collaborate to prevent and eradicate tax crimes by:

Sharing information and intelligence on potential tax crimes.
Conducting joint investigations and audits.
Providing training and education on tax laws and regulations.
Establishing a framework for cooperation and collaboration.

Q: What are the next steps for tax authorities and financial institutions to prevent and eradicate tax crimes?

A: The next steps for tax authorities and financial institutions to prevent and eradicate tax crimes include:

Implementing the provisions of Law Number 8 of 2010.
Conducting regular training and education on tax laws and regulations.
Establishing a framework for cooperation and collaboration.
Continuously monitoring and evaluating the effectiveness of tax crime prevention and eradication efforts.

By answering these FAQs, we hope to provide a better understanding of the importance of preventing and eradicating tax crimes through the application of Law Number 8 of 2010.