Tips in Dealing with SP2DK

Jakarta, Ideatax -- Starting in March 2024, the Directorate General of Taxes (DGT) will email 25 million taxpayers to remind those who have not reported their annual tax return. If further detailed, the email from DGT will be sent to 23 million individual taxpayers, 2 million corporate taxpayers, and others.
In addition to the appeal email blast, DGT basically also has other mechanisms to write to taxpayers, one of which is the Data and/or Information Request Letter or Surat Permintaan Penjelasan atas Data dan/atau Keterangan (SP2DK). SP2DK is a letter issued by the Head of the Tax Service Office or Kantor Pelayanan Pajak (KPP) to the taxpayer in the context of implementing data and/or information requests.

It is important to know that, as an official request letter for data and information, SP2DK must be answered or responded to by the taxpayer within 14 calendar days from the date of SP2DK, the date of SP2DK sending, or the date of SP2DK submission.

The taxpayers can submit their responses in three ways: face-to-face (directly or through audio-visual media) or written. Direct submission of SP2DK responses is when the taxpayer comes directly to the tax office or when the account representative makes a field visit to the taxpayer's location. On the other hand, submission of responses through audio-visual media is with consideration of effectiveness, efficiency, and availability of facilities and infrastructure. Meanwhile, written responses can be submitted through the following media:

• Tax return submitted by the taxpayer, 
• The response letter is sent directly to the tax office, sent via fax, or sent via delivery or expedition services,
• Electronic explanation through the online DGT account if the taxpayer has received the SP2K submitted electronically through the DGT account and the online DGT is able to accommodate the taxpayer's response letter and
• other forms (determined by the Director General of Taxes).

 

When the taxpayer does not respond to the SP2DK or refuses the field visit, the account representative may invite the taxpayer to come to the tax office to conduct a discussion or include the results of the taxpayer's supervision in the Report on the Results of the Request for Explanation of Data and/or Information, or Laporan Hasil Permintaan Penjelasan atas Data dan/atau Keterangan (LHP2DK).
The research results on the response or explanation of SP2DK submitted by taxpayers are in LHP2DK. There are fifteen conclusions generated by the LHP2DK, including:

1. No indication and mode of non-compliance found;
2. Taxpayer is not located; 
3. The individual taxpayer dies, the individual taxpayer will or has left Indonesia forever, or the corporate taxpayer has disbanded;
4. The taxpayer does not provide an explanation on SP2DK;
5. Taxpayer submits explanations that are not in accordance with the research results and/or are not willing to submit or amend the SPT;
6. The taxpayer submits an explanation that is in accordance with the research result and/or willing to submit or amend the tax return;
7. The taxpayer submits an explanation that needs to be validated or confirmed for its correctness or accuracy through an assessment activity for taxation purposes;
8. The taxpayer has data and/or status that is not in accordance with the actual condition;
9. Taxpayers are indicated to have violated the provisions related to tax services and/or facilities received or owned;
10. There is an error in the legal product in the form of writing errors, calculation errors, or errors in the application of certain provisions in tax laws and regulations;
11. The taxpayer is under audit, has been under audit, is under preliminary evidence audit, or is under investigation;
12. There is new data and/or information in the Supervisory Information System related to KKPt and LHPt that becomes the basis for the issuance of SP2DK;
13. The taxpayer is indicated to have committed a tax-criminal offense;
14. Taxpayers who were originally other taxpayers have been determined to be strategic taxpayers, and/or strategic taxpayers have been researched 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, and/or
15. other conclusions.

 

Based on the conclusions and analysis mentioned above, the account representative will prepare follow-up recommendations to be made to the taxpayer as follows:

1. The account representative may recommend that the SP2DK continue its supervision. 
2. The Account Representative may provide recommendations for observation activities and intelligence operations, changes in taxpayer data, and changes in service administration in the office.
3. The Account Representative may provide a recommendation in order for the SP2DK to be followed up with an audit or assessment.

 

Due to the broad authority owned by the account representative in relation to the SP2DK, there are several things the taxpayer can do to improve the quality of the SP2DK response.

1. When receiving SP2DK, taxpayers need to record the date of SP2DK or the date of SP2DK submission if possible. It is important to calculating the time period for taxpayers to respond to the SP2DK. As it is known, SP2DK must be responded to within 14 calendar days from the date of SP2DK, the date of sending, or the date of SP2DK submission. If the taxpayer does not submit the SP2DK within the mentioned period, the Account Representative may recommend a tax audit on the SP2DK.
2. If the taxpayers consider that they cannot fulfill the SP2DK within 14 days, they can write a letter requesting an extension of the SP2DK response submission. A request for response to SP2DK can also be submitted directly to the account representative to be further stated in the minutes.
3. Respond to the SP2DK to the extent of the question or information requested. Lengthy explanations in the SP2DK will lead to more questions by the tax authorities. Thus, Taxpayers should provide effective and efficient responses to the SP2DK as much as possible.
4. Taxpayers need to reconfirm the data owned by taxpayers. It could be that the data submitted by the Tax Authority in the SP2DK is incorrect. Thus, through the SP2DK response letter, the taxpayer can submit the actual data and/or information.
5. The taxpayers need to ensure that the SP2DK response is signed by the right party. SP2DK must be signed by the management, in this case the board of directors and or commissioners. If the signing of the SP2DK is delegated to another organizational structure, the SP2DK needs to be equipped with a special power of attorney.
6. Taxpayers need to keep proof of SP2DK delivery. This delivery receipt is important to prove that the taxpayer has responded to the SP2DK within fourteen calendar days from the date of the SP2DK or since the SP2DK was delivered.

 

Those are the steps that taxpayers can take to minimize tax risks related to SP2DK. If you need assistance or further information about SP2DK, you can contact Ideatax.