Why is the Core Tax Administration System Important in Company Financial Planning?

Why is the Core Tax Administration System Important in Company Financial Planning?

PPN - 28 Nov, 2023 10:11 WIB

Jakarta, Ideatax -- The Directorate General of Taxes has introduced the Core Tax Administration System or what is known as the Core Tax System. This step was taken in response to technological advances that enable the DGT to be more efficient and effective in managing tax data, while making it easier for companies to fulfill their tax obligations in an increasingly digitally connected business environment.


This latest innovation also brings improvements in tax administration to become more accountable, effective, efficient and better integrated. However, how important is implementing this system in company financial planning? Let's discuss it further.


The Importance of the Core Tax Administration System

With the implementation of the core administration system, data management processes, services, inspections, supervision and law enforcement will undergo a transformation into the digital realm.


This is very important in company financial planning, especially in the tax aspect. Apart from that, there are also a number of other reasons which include:


1. Digital Transformation and Modernization

By implementing digital technology, the process of collecting, processing and storing tax data becomes more efficient. Thus, tax administration is transformed to a more sophisticated level and is integrated with advances in information technology.

2. Improve Tax Management

The Core Tax System also makes it easier for companies to manage tax aspects more efficiently and effectively. With integrated structure and automation, companies can reduce the risk of errors and maximize the management of their tax obligations.

3. Tax Administration Efficiency

With the implementation of this system, efficiency in tax administration increases. Companies can more easily and quickly manage tax data, reduce the human workload previously required, and achieve higher efficiency in the tax administration process.

4. Openness and Transparency

Not only that, the Core Tax Administration System is also important because it brings a high level of openness and transparency in the relationship between companies and tax authorities. In fact, data can be accessed in real-time and tracked easily, creating a more open and transparent environment between both parties.

5. Increase data accuracy

By automating tax administration, this system reduces the possibility of human error in tax calculations and reporting. The resulting data becomes more precise and trustworthy. Of course, this avoids potential risks and calculation errors.


So, from the explanation above, it is clear that the Core Tax Administration System is a very important foundation for managing taxes in the digital era. This system not only makes tax management easier, but also brings benefits in company financial planning. By utilizing this system, companies can increase efficiency, openness and transparency in their tax administration.


Ideatax, as a tax expert partner, is ready to help maximize the benefits of implementing the Core Tax System for your company's financial success. Don't hesitate to contact us today for further consultation to get the first step towards better tax and financial efficiency.

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