Collecting Incoming Tax Through Self Assessment System: Ideology and Prosperity

Abstract

Tax is a state obligation and service as well as the active role of the state and community members to finance various state needs whose implementation is regulated in laws and regulations for the welfare of the nation and state. This study aims to identify the practice of collecting income tax with a self-assessment system in Badung Regency, Bali Province. The research method is exploratory to identify various indications related to the implementation of the self-assessment system in collecting incoming tax while adhering to the taxation principles that are universally adopted, namely justice, administrative convenience/efficiency and productivity of state revenues. Data collection techniques using interview guidelines, and literature study. The informants were tax payers in Badung Regency which were selected purposively. The results reveal that collecting incoming tax through self-assessment system is an endeavor of improvements that are mainly intended for the system and procedures for paying taxes in the current year so as not to disturb the liquidity of taxpayers in running their business. Therefore, the directions and objectives of the improvement of the Income Tax Law are 1) to improve the fairness of tax imposition, 2) to provide more convenience to taxpayers, 3) to support government policies in order to increase direct investment in Indonesia, both foreign and domestic capital investments in certain business fields, especially in Badung Regency.