INDONESIA TAX AMNESTY PROGRAM

We belief that The deficit in tax revenue is not supposed to be reasons to legalize tax amnesty in right now, because Indonesia almost every year always experiencing the budget deficit commonly the government to fulfill that gap by taking foreign debt, even if the government side going to said that if taking foreign debt, it would cause the swelling of financial burdens for the payment of loan interest and principal, as well as exchange rate risks.  Yeah we going to agree with that but it doesn’t mean to cover that deficit the government should legalize tax amnesty in which government still have another good option like the issuing of retail domestic obligation which is the government will issue retail treasury bond to their local people in which their local people only that have right to buy the bond with reachable price so the threat of exchange rate risks can be eliminated rather than taking foreign debts. So the risks of this type obligations can be really minimize in which it will not make Indonesia get   crisis like in 1997 that Indonesia need to pay external debt which is foreign debt.

According to suara.com the fact that government in 2016 already released the State Securities retail/ domestic bond for Rp 512 trillion to fund national project development and it proven success. Which meant that we can take from this example that our current society have capability to fund our own national project development through government retail obligation rather than count on tax amnesty from Indonesian asset abroad that should be exploited more, punish and hunted because of their uncompliant tax payments which will be paying fine more rather than giving tax amnesty program be that will make them only pay 2 – 4 % of their assets.  

The second’s option for government to reduce deficit budget in 2016 is to revise and reduce a plan national expenditure in which government should be realistic in allocating national budget to funding the project and more count on privet funding in the financing national project development rather than forcing itself to be out of its capability or using government budget.  Its okay if the government can’t reach 5 % GDP growth for this year because less government spending but

we belief that if tax amnesty being legalize, Indonesia  will lose a lot of money from naughty taxpayer that should be have hard punishment so far in which based on the constitutions   in Indonesia (Jakarta post)  normally, taxpayers in the highest income bracket have to pay a 30 percent tax annually. There is also a 200 percent fine on back taxes.

Moreover based on financial ministry data, financial ministry said that they already have data about 6000 Indonesian assets who stashed their assets from abroad  in early 2016 before panama paper scandal and worth around Rp 3000 trillion “Finance Minister Bambang Brodjonegoro had mentioned about it)  (republica.com) so that means that the data about Indonesian assets abroad  is increasing after panama paper

My questions is why government still keep secret those data and give them chance to be tax compliant through tax amnesty and threat them  if not join tax amnesty program they will be cached . and why government not use those data as ammunition or weapon to crack down the naughty taxpayers by opening those data to KPK or police or other institutions that will crack down them Rather than keep secret this data, and only give this data to KPK or other eradication institutions if the naughty taxpayers fail to join tax amnesty programs and my question is why not now, why government protect a betrayer of Indonesia, and why government not act as supposed to be acted.

And what for Indonesia create KPK, OJK,  UU Tipikor, UU Pencegahan dan Pemberantasan Pencucian Uang if finally government act like this, , the government could be accused of "cooperating" with naughty taxpayers. And it will make dispointed or unfainess feeling from a complient tax payer because they have honest, disipline, and on time in payer their taxes and declaring their assets honestly Because government act unfair action toward their citizen in which it can’t be justified as father, government should act fairly for all their citizen  

And in the 2018 Indonesia will implement “Automatic Exchange of Financial Information” that consist of 91 countries including tax heaven countries in the world such Singapore, virgin island etc. ... in which all countries who join this program will share each other information about the asset of every citizen to avoid hidden assets and tax avoider “ so that by implementing this program in 2018 “ naughty taxpayer can run and they can’t hide anymore” just waiting their turn to be cached by their own government. Or if Indonesia still implementing this amnesty program Indonesia will lose houndred more trillion rupiah.