Arie Pratama, SE, M.Ak, CPSAK, CPMA, CertIFR, CPA.

TAX MANAGEMENT
WHY TAX MANAGEMENT NEEDED?

Human Being Nature

Human never want his/her wealth reduced
If one may not pay, why I have to pay?
If one may pay smaller, why I have to pay bigger?
TAX MANAGEMENT

The effort of taxpayer to achieve optimal

fulfillments of tax obligations by:
Planning
Organizing
Actuating
Controlling
TAX MANAGEMENT

ORGANIZING
PLANNING
Set an
Set a goals and
infrastructure
actions for
and resource to
reducing tax
implement a plan

ACTUATING CONTROLLING
Lead and Review the
motivate all actions and take
actions necessary the feedback
TAX MANAGEMENT

Tax management must be:

Economy
Efficient
Effective
FACTORS AFFECTING TAX
MANAGEMENT
Difficulties of Tax Laws

Amount of Tax Payable

Negotation Cost

Detection Risk

Tax Sanction / Penalties

Taxpayer and Tax Office Morale

EXPLANATION

Difficulties of tax laws

Tax laws is sometimes difficult to apply contain
grey area, or sometimes not easy to understand,
or have too many differences with accounting
standard
Taxpayer will opt to save their time to comply to
this tax laws
Consideration : HIGH COMPLIANCE COST
EXPLANATION

Amount of tax payable

The bigger the tax payable, the higher the effort of
taxpayer to reduce it
Consideration : How to manage the progressive
income tax? IT IS A GIVEN FACTOR

Negotation Cost
To comply to tax laws, taxpayer often negotiate with
tax office or even tax consultant
If the negotation effect is higher, taxpayer will do lots
of negotiation
EXPLANATION

Detection risk
All taxpayer has different detection risk
The lower the detection risk, the higher the tax
evasion (tax fraud)
Keyword : MONITORING

Tax sanction / penalty

The lower the sanction, the taxpayer will increase
their negative attitude toward tax
EXPLANATION

Taxpayer and tax office etiquette / morale

Tax in Indonesia is still perceived as a burden
Indonesian people never feel the effect of tax, in
the economic development
Indonesian people still struggle to meet their basic
needs how they can paid tax?
Tax is not an important political instrument in
Indonesia
DAILY ACTIVITIES OF TAX
MANAGEMENT
TAX COMPLIANCE
TAX PLANNING
TAX LITIGATION
TAX RESEARCH
DAILY ACTIVITIES
TAX COMPLIANCES
Preparing tax administration / Tax system
Tax bookkeeping
Tax withholding
Tax deposit
Tax reporting
Preparing data for tax audit
DAILY ACTIVITIES
TAX PLANNING
Strategy to arrange companys accounting
and finance system, to minimize tax payable
without violating tax laws

It is a major part of tax management process

DAILY ACTIVITIES
TAX LITIGATIONS
Effort to settle any conflict in tax (usually with
tax office = SENGKETA PAJAK)

Tax conflict usually arise because there is a

difference in the intepretation between
taxpayer and tax office regarding a tax laws

Objection, appeal, correction is part of tax

litigation
DAILY ACTIVITIES
TAX RESEARCH
Process to solve a problem, find answer or
give recommendation to tax problem in
company
Determine the relevant tax facts
Identify issue related to the facts
Evaluate data and or information
Develop and construct summary and conclusion
Communicate the recommendation
TAX PLANNING STEPS

WHEN WHEN
STARTING THE CONDUCTING
BUSINESS THE BUSINESS

WHEN
CLOSING THE
BUSINESS
COMMON TAX PLANNING STRATEGIES

Tax Savings

Tax Avodiance

Delay of Tax Payment

Optimizing Tax Credit

Avoiding Tax Audit

Avoding Tax Laws Violation

INCOME QUADRANT

PROFESSIONAL
BUSINESS (B)
SERVICE (P)

INVESTOR (I) EMPLOYEE (E)

THANK YOU