Epajak – THE ROLE OF TAX CONSULTANTS TO GENERATE ADDED VALUE FOR THE COMPANY , Before talking about the role of tax consultants, of course we need to know the basic thing, namely the definition of a tax consultant. In the regulation of the Minister of Finance, it is written about the definition of this tax consultant as stipulated in PMK number 111 / PMK.03 / 2014 is a person who provides tax consulting services to taxpayers in order to exercise their rights and fulfill their tax obligations in accordance with tax laws and regulations.
THE ROLE OF TAX CONSULTANTS : Regulatory Dynamics
Tax law is part of Indonesian law, so a tax consultant must understand the legal umbrella that oversees his activities. A tax consultant really needs to understand the outline of the legal system in Indonesia in general, for example the basics of civil law, business law, including various types of business entity forms such as Limited Liability Company (PT), Firm, CV, Foundation, Association. A Tax consultant also needs to study other laws related to the running of a company or business entity such as labor law, Capital Market Regulations, Sharia Banking and so on. This is in accordance with what is expressed by Kristanto (2009).
The Indonesian government itself has actually paid sufficient attention to the role of tax consultants by including them in the minister of finance regulations. Minister of Finance Regulation No.485/KMK/.03/2003 on Indonesian Tax Consultants which was later updated with Minister of Finance Regulation No. 98/PMK.03/2005 and the latest issued Minister of Finance Regulation No. 111/PMK.03/2014 shows how fast the dynamics of taxation issues and tax consultants in particular.
To ensure that a tax consultant can provide his/her services professionally, based on PMK 111/PMK.03/2014, it is written that he/she is a person who has served as an employee at the Directorate General of Taxes (DGT) and resigned before the retirement limit. Article 3 of the PMK also provides requirements for retired DGT employees who wish to become tax consultants, namely those who have devoted themselves for at least 20 years, have never been sentenced to severe disciplinary punishment based on laws and regulations, and have passed a period of 2 years from the date of retirement decision.
A tax consultant who is competent in his/her field and has the necessary background and skills cannot directly practice looking for clients. This tax consultant must have a Practice License issued by the DGT or an appointed official.
Regulation of the Director General of Taxes PER -13/PJ/2015 on the Implementation Guidelines for Tax Consultant Provisions further regulates the existence of tax consultants, Tax Consultant Associations and the governance of Tax Consultant Organizations as well as the rights and obligations of Tax Consultants (Lutfi, 2009).
The Important Role of Tax Consultants
The mandate of the NRI Law clearly provides protection to the color of the state as a taxpayer while emphasizing the importance of revenue from this tax sector to the state. Tax revenue for the last 9 years before 2020 can be seen in the table below:
From the table, it can be seen that the state revenue from the tax sector is in the range of more than 70%, which means that taxes are the main source to finance the government (Lutfi 2009). This is in line with what Minister of Finance Sri Mulyani said that tax growth in early 2023 was very good because its revenue grew 48.6% (IDR 162.23 T). And indeed, if we look at the beginning of the pandemic where Indonesia’s tax ratio was at 8.33%, then rose to 9.11% the following year, it indicates that tax revenue to Indonesia’s GDP has increased. This tax revenue comes from two sources, namely domestic taxes such as PPH, VAT and international trade taxes.
The question is how is the role of this tax consultant from the perspective of a business entity or business actor?
Suandy (2004) believes that in business practice, entrepreneurs generally identify tax payments as a burden. With this mindset they will try to minimize the burden in order to optimize profits. In order to improve efficiency and competitiveness, a manager will try to reduce costs as small as possible, as well as tax payment obligations. This is because taxes will reduce profit after tax (tax after profit), rate of return and cash flow (Suandy, 2004).
The role of a Tax Consultant for a company or business is very important to provide consulting services or knowledge to the client for the following reasons:
Complex tax regulations.
Tax regulations in Indonesia can change every year, such as before and during the Covid-19 pandemic. The government provides relaxation to MSMEs for their PPH payments
Differences in interpreting regulations
The issuance of one regulation and followed by a regulation the following year may cause confusion or confusion for business actors regarding which regulations apply to their business sector.
In general, the company will focus on running its core business, while other matters related to tax administration are given to a team of experts. The company must be run efficiently so that it tends to limit its human resources to basic matters first, only after the business grows will it expand its organizational structure. It is in this condition that the role of a consultant is needed so that tax rights and obligations can be carried out accurately.
Taxes are an important aspect of state revenue sources that are used by the government to pay civil servants and the military, provide energy subsidies for the color of the country, guarantee health costs, subsidize housing, transportation and education. The understanding of citizens, including business actors, of tax regulations greatly affects the level of payment compliance and will ultimately affect the achievement of the state tax revenue target. Therefore, the role of tax consultants is needed by taxpayers to represent or become tax attorneys in audits and objections at the tax office.
- Efisiensi Pajak di Bidang Hiburan
- Sistem Informasi dan Layanan Konsultasi
- Solusi Pajak untuk Industri
- PPnBM PP No. 44 Tahun 2022
For a company, a business decision is certainly related to finance, and everything related to this is related to taxation either directly or indirectly. A good business decision when related to taxes can be a bad business decision and vice versa. It is at this point that a truly competent tax consultant is needed for the company. What is recognized by business people is the minimization of the tax burden that can be done within and outside the regulatory frame.
The role of the tax consultant is not to let this business violate the rules because it will have unfavorable consequences in the future. This tax minimization effort is generally referred to as tax planning or tax planning carried out by engineering the taxpayer’s business and transactions so that the tax forest is in a minimum amount but still within the framework of tax regulations. This tax planning can have a positive or negative connotation. Positive tax planning is a plan to fulfill tax obligations completely, correctly and on time so as to avoid wasting resources (Suandy, 2008).
Lombanturan (1996) mentions tax management as a tax savings, tax avoidance, tax planning, tax relief and tax protection. Lomtanturan adds that tax management is part of financial management. Financial management is all activities related to the acquisition, funding, and management of assets. Thus, the objectives of tax management must have the same objectives as financial management, namely obtaining adequate profit and liquidity.
It can be concluded that the role of tax consultants for companies is very important because it concerns the profit and liquidity that will be obtained. So that the role of this tax consultant will be an added value for the company.
Eksistensi Konsultan Pajak Dalam pelaksanaan Self Asesment System , 2019, Cetakan Pertama, Chairul Lutfhi, Publica Institute Jakarta.
Perencanaan Pajak Edisi 4, 2008, Erly Suandy, Penerbit Salemba Empat, Jakarta
Peraturan Menteri Keuangan PMK Nomor 111/PMK.03/2014
Menjadi Konsultan Pajak Kelas Dunia, 2009,Prijohandojo Kristanto, Gramedia Pustaka Utama