Be careful with SP2DK Follow-up

In the previous article, we discussed a lot about the Request for Explanation, Data, and Information (SP2DK) issuance, the period of SP2DK issuance, and the types of trigger data in SP2DK. In this article, we will focus on the follow-up of SP2DK and the things to look out for in responding to SP2DK. For information, if SP2DK is not well responded to, it can be followed up with an examination or preliminary evidence examination that leads to the existence of a tax offense.

Before going further on the follow-up of SP2DK, remember that SP2DK must be submitted or sent by the tax authority within three working days after the issuance date of SP2DK. If not, the SP2DK may be canceled. Therefore, taxpayers need to ask the tax authorities, in this case, the Account Representative, if the date of SP2DK is far from the date of SP2DK receipt. In addition, what needs attention is that the taxpayer must respond to the SP2DK within fourteen working days from the date the SP2DK is received, the date the SP2DK is sent, or the date the SP2DK is submitted directly to the taxpayer. Otherwise, the account representative will follow up on the SP2DK according to the existing data in the DGT information system.

 

Fifteen types of conclusions can be drawn by the tax authorities after researching SP2DK responses, including:

1. No indication and mode of non-compliance found.
2. Taxpayer is not found.
3. The individual taxpayer has passed away, the individual taxpayer will or has left Indonesia forever, or the corporate taxpayer is dismissed.
4. The taxpayer does not explain SP2DK.
5. The taxpayer submits an explanation that is not to the research result and/or is not willing to submit/amend the Tax Return to the research result.
6. Taxpayers submit explanations by the investigation results and/or are willing to submit or correct the tax return by the investigation results.
7. The taxpayer submits an explanation that needs to be validated or confirmed for its truth or accuracy through an assessment activity for taxation purposes.
8.  The taxpayer has data and/or status that is not following the current condition.
9. Taxpayers are indicated to have violated the provisions related to taxation services and/or facilities received or owned.
10. There is an error in the legal product in the form of a writing, calculation error, or misapplication of certain provisions in tax laws and regulations.
11. The taxpayer is under audit, has been audited, is under preliminary evidence audit, or is under investigation.
12. There is new data and/or information in the Supervisory Information System related to the research working paper and research result report, which become the basis for the SP2DK issuance.
13. The taxpayer is indicated to have committed a tax offense.
14. Taxpayers who were originally other taxpayers have been determined to be strategic taxpayers, and/or strategic taxpayers have been investigated for one or several types of taxes in the current fiscal year, and the SP2DK issued is not based on the implementation of comprehensive research or
15. Other conclusions.

 

Based on the above conclusions, the account representative may provide several follow-up recommendations, including the following:

1. If the investigation on SP2DK results in the conclusion that there are no indications and modes of non-compliance, the AR can provide a recommendation that the request for an explanation of data and information (P2DK) is considered complete and a Notice of Progress on the Implementation of Requests for Explanation of Data and/or Information (SP3 P2DK) is issued.
2. If the investigation on SP2DK results in the conclusion that the taxpayer is not found, the AR may provide recommendations for proposed observation activities or intelligence operations, changes in data and/or taxpayer status in the office, or changes in the administration of tax services and/or facilities in the office.
3. The Account Representative may provide a recommendation to conduct an audit of the taxpayer if the investigation on SP2DK results in the conclusion that the individual taxpayer has passed away, the taxpayer does not explain the SP2DK, or the taxpayer submits an explanation that is not following the results of the investigation.
4. If the investigation on SP2DK results in the conclusion that the taxpayer is willing to submit/amend the tax return, the Account Representative may provide recommendations for supervision of the submission or amendment of the tax return.
5. Recommendation to propose an assessment activity for tax purposes will be carried out by the Account Representative if based on the conclusion obtained that the taxpayer submits a response that still requires assessment validation.
6. The Account Representative can also provide recommendations for changes to data in the office if, based on the results of the conclusion, it is known that the data or status owned by the taxpayer does not match the current conditions.
7. If the Account Representative concludes that the taxpayer has committed a violation related to the tax services or facilities received or owned, the Account Representative may provide recommendations for changes to the administration or tax facilities provided.
8. If the Account Representative concludes that the error in the legal product is in the form of a writing error, calculation error, or misapplication of provisions, the Account Representative may provide recommendations in the form of correcting the legal product in the office.
9. If the taxpayer is being or has been examined for preliminary evidence or investigation, the Account Representative will provide recommendations in the form of forwarding data or information to the unit conducting the examination or investigation.
10. A recommendation in the form of a preliminary evidence examination will be taken by the AR if, based on the conclusion of the Account Representative, the taxpayer is indicated to have committed a tax crime.
11. If the Account Representative concludes that there is new data or information related to the SP2DK, the Account Representative will suggest a comprehensive Material Compliance Investigation be conducted again.
12. Those are the things that need to be considered in responding to SP2DK. To avoid taking the wrong step in responding to SP2DK, which leads to a tax audit, taxpayers can first consult with an account representative. However, if taxpayers need further assistance in responding to SP2DK, Ideatax is the expert.

 

Legal Basis

• Law Number 6 of 1983 on General Provisions and Tax Procedures, as amended several times, and Law Number 7 of 2021 on Harmonization of Tax Regulations (KUP Law)
• Minister of Finance Regulation Number 45/PMK.01/2021 concerning Account Representatives at the Tax Service Office; and
• Circular Letter of the Director General of Taxes, Number SE-05/PJ/2022, Concerning Supervision of Taxpayer Compliance.