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In 2023, DGT reported that the number of Request for Explanation, Data, and Information or Surat Permintaan Penjelasan, Data dan Keterangan (SP2DK) letters issued during 2022 was 525,683 letters. From 525,683 SP2DK, 404,825 letters have been successfully followed up and resolved by DGT. The nominal amount of SP2DK that has been settled by DGT is 33.22 trillion rupiah (DGT 2023).
Note that SP2DK is a letter issued by the Head of the Tax Service Office to request explanations, information, and data to the taxpayers in the context of monitoring tax compliance. There are at least six things that taxpayers need to know about the SP2DK.
First, before issuing SP2DK, the Account Representative conducts comprehensive research that includes risk profile analysis, tax reporting and payment analysis, taxpayer business process analysis, financial statement analysis, transfer pricing analysis, and other analysis, including visits to taxpayer locations. The analysis results are then stated in a research report signed by the head of the tax service office.
Second, the SP2DK is sent to the taxpayer in three ways: sent via fax, a postal/courier/expedition service with delivery proof, or directly given to the taxpayer through a visit. SP2DK can also be given directly to the taxpayer if they come to the tax office no later than three working days from the date of issuance of the SP2DK. If the taxpayer finds that the SP2DK is sent more than three working days after the date of issuance, the taxpayer can file a lawsuit over the validity of the SP2DK.
Note that with the implementation of the core tax system, in the future, SP2DK will be sent through the taxpayer account management owned by the taxpayer. Thus, taxpayers no longer receive SP2DK in physical form. However, to be able to utilize this service, two conditions must be met. The taxpayer must have activated the DJP online account first, and DJP online has accommodated the electronic submission of SP2DK.
Third, the conditions can cause SP2DK cancellation. The head of the tax office can cancel the SP2DK if it is issued but not delivered to the taxpayer. It can also happen if writing errors and/or recording or selection errors that are administrative or caused by human error are found. Another condition that causes SP2DK cancellation is when the head of the tax office finds that an inspection order, letter of preliminary evidence, or investigation order is against the taxpayer for the same type of tax, tax period, and/or tax year as the SP2DK.
The SP2DK issuance cancellation is to follow up by the tax office issuing a Notice of Progress on the Implementation of a Request for Explanation of Data and/or Information, or Surat Pemberitahuan Perkembangan Pelaksanaan Permintaan Penjelasan atas Data dan/atau Keterangan (SP3 P2DK) to the taxpayer. The SP3 P2DK contains the correct data elements of the canceled SP2DK, including the data and/or information to be clarified. Thus, if the Account Representative informs the taxpayer about a canceled SP2DK, the taxpayer must request SP3 P2DK from the Account Representative.
Fourth, taxpayers are allowed to provide explanations and/or information on SP2DK within fourteen calendar days from the date of SP2DK, the date of sending SP2DK using fax, postal, or courier services, or the date of delivery of SP2DK directly to the taxpayer.
The explanation or provision of the information above may be provided face-to-face, through audio-visual media, or written explanation.
A direct face-to-face explanation can be given when the taxpayer comes to the tax office or during the tax office's visit to the taxpayer's location. Moreover, written media explanations can be through tax returns submitted by taxpayers, letters submitted to the Tax Office, electronic explanations submitted through online DJP accounts, and other forms specified by the Director General of Taxes. Meanwhile, explanation through audio-visual media is performed for the sake of effectiveness, efficiency, and the availability of supporting facilities and infrastructure.
Fifth, even though the deadline for submission of a response or explanation has been exceeded, the taxpayer may still submit a response or explanation. However, there is discretion from the head of the Tax Office to accept or not accept the explanation from the taxpayer by considering the risk of compliance, good faith, location of the taxpayer, efficiency, effectiveness, and the period of implementation of the request for explanation, information, and data.
Lastly, or the sixth, the Account Representative can conduct a field visit if the taxpayer does not provide the SP2DK explanation by the predetermined period. Based on the field visit, the Account Representative will make a report on the Results of the Request for Explanation, Data, or Information, or Laporan Hasil Permintaan Penjelasan, Data, atau Keterangan (LHP2DK) if the taxpayer is missing, has unknown or unknown whereabouts, has died, or has left Indonesia for a long time.
If the taxpayer is inactive or dismissed, the Account Representative will invite the management/directors/shareholders to attend the discussion with the Account Representative.
These are the six things you need to know regarding SP2DK. If you need further information or assistance in responding to SP2DK, you can contact Ideatax.
