Evaluation of tax debt management for bankrupt taxpayers in Indonesia

https://doi.org/10.35912/jomabs.v1i4.2210
Published: Jul 5, 2024

Abstract:

Purpose: This study aims to evaluate tax debt management for taxpayers who are bankrupt in Indonesia, based on successful tax debt management.

Method: This study is a literature review that compiles and synthesizes data from Indonesian Tax Collection Law with Distress Warrant Law, General Tax Provisions and Procedures Law, Bankruptcy and Postponement of Debt Payment Obligations Law, Minister of Finance Regulation. This study also integrates previous research to evaluate tax debt management for bankrupt taxpayers in Indonesia, based on successful tax debt management.

Results: Persuasive communication with bankrupt taxpayers is deemed nonessential in the context of tax debt management within bankruptcy proceedings. Standardized procedures were in place within the Directorate General of Taxes prior to resorting to law enforcement measures for debt collection from bankrupt taxpayers. These measures encompass a spectrum of enforcement tactics, including asset confiscation, imposition of travel restrictions (exit bans), and detainment in extreme circumstances. The Directorate General of Taxes assesses various criteria to determine the viability of collecting debt from bankrupt taxpayers, considering factors such as economic feasibility and practicality.

Limitations: This study did not conduct a comparative analysis of tax debt management for bankrupt taxpayers in Indonesia and similar practices in other countries. Such a comparison would elucidate how different jurisdictions address tax debt management for bankrupt taxpayers, and could offer valuable insights for overcoming collection challenges specific to Indonesia. By examining common practices in other countries, this study provides recommendations tailored to the Indonesian context to improve the effectiveness of tax debt collection from bankrupt taxpayers.

Contribution: This study enriches the literature on how the Directorate General of Taxes manages bankrupt taxpayers to pay their debts.

Keywords:
1. Bankrupt Taxpayers
2. Directorate General of Taxes
3. Tax Debt
4. Tax Debt Management
Authors:
1 . Tosan Yanuar Rachmadi
2 . Yulianti Abbas
Universitas Indonesia
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How to Cite
Rachmadi, T. Y., & Abbas, Y. (2024). Evaluation of tax debt management for bankrupt taxpayers in Indonesia. Journal of Multidisciplinary Academic Business Studies, 1(4), 695–701. https://doi.org/10.35912/jomabs.v1i4.2210
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Issue & Section
Vol. 1 No. 4 (2024): August
Articles
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  2. Chiou, T.-Y., Chan, H. K., Lettice, F., & Chung, S. H. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822-836. doi:https://doi.org/10.1016/j.tre.2011.05.016
  3. Chooi, A. (2023). Mobilizing Revenue: Emerging Approaches to Managing and Collecting Tax Debt to Improve Tax Payment Compliance.
  4. Court, M. C. (2024). Sistem Informasi Penelusuran Perkara.
  5. Court, S. C. (2024). Sistem Informasi Penelusuran Perkara.
  6. Court, S. C. (2024). Sistem Informasi Penelusuran Perkara.
  7. Damayanti, R., & Abdi, F. (2020). UNSYNCHRONIZED IMPACT OF LEGAL REGULATION ON THE LOSS OF STATE’S STANDING FOR THE PREFERENCE RIGHT OF TAX DEBT IN BANKRUPTCY. Indonesian State Law Review (ISLRev), 3(1), 1-8.
  8. DePamphilis, D. M. (2022). Alternative exit and restructuring strategies: bankruptcy, reorganization, and liquidation. Mergers, Acquisitions, and Other Restructuring Activities (Eleventh Edition), 485-505.
  9. Elmirzaev, S., & Kurbankulova, N. (2016). Tax Arrears, Tax Compliance and Tax Debt Management in Uzbekistan: Existing Issues and Possible Solutions. Research Journal of Finance and Accounting, 7(2).
  10. Hartini, R. (2018). Payment of Tax Dues and Workers' Wages in Bankruptcy in Indonesia. Paper presented at the 2018 3rd International Conference on Education, Sports, Arts and Management Engineering (ICESAME 2018).
  11. Keuangan, P. M. (2021). Peraturan Menteri Keuangan Nomor 118/PMK.01/2021 Tahun 2021 tentang Organisasi dan Tata Kerja Kementerian Keuangan.
  12. Murtezaj, I. M. (2024). Tax Debts Pose a Significant Challenge for Tax Institutions. International Journal of Religion, 5(6), 592-600.
  13. OECD. (2019). Successful Tax Debt Management: Measuring Maturity and Supporting Change.
  14. Permatasari, C. D. (2022). Improving the performance of tax bailiffs through understanding the effects of job characteristics, job demands, and compensation.
  15. PUSAT, P. N. J. (2024). Sistem Informasi Penelusuran Perkara.
  16. Riesenfeld, S. A. (2024). Bankruptcy.
  17. Ruf, B. M., Muralidhar, K., & Paul, K. (1998). The Development of a Systematic, Aggregate Measure of Corporate Social Performance. Journal of management, 24(1), 119-133. doi:10.1177/014920639802400101
  18. Subagyo, A., & Saleh, M. (2023). The Liability of Tax Officials for the Expiration of Tax Debt Billing. Ius Positum (Journal Of Law Theory And Law Enforcement), 105-121.
  19. Sunarmi, S., Sukarja, D., & Lubis, T. M. (2021). The Standings of Tax Receivables in Bankruptcy Cases: A Study on Managing and Settling Assets. Syiah Kuala Law Journal, 5(3), 329-344.
  20. Suryana. (2022). UU Pailit, Pajak, dan Gugatan Actio Pauliana.
  21. Tiranda, Y. M. (2020). SETTLEMENT OF TAX PAYABLE IN BANKRUPTCY CASE: A SYSTEMATIC REVIEW. Systematic Reviews in Pharmacy, 11(11).
  22. Turker, D. (2009). Measuring Corporate Social Responsibility: A Scale Development Study. Journal of Business Ethics, 85(4), 411–427.
  23. YUSUF, H., & ISQIYARTA, J. (2019). Analisis praktik penghindaran pajak di bidang impor pada kepailitan perusahaan ekspor impor. Jurnal BPPK: Badan Pendidikan dan Pelatihan Keuangan, 12(1), 20-30.