STPD and Tax Collection
By : Amin Subiyakto, Widyaiswara BDK Yogyakarta
In the article about STPD and the risk of doubling arrears, the emergence of the basis for double billing as a result of the issuance of STPD over SKPD has been described. This applies to official assessment tax systems such as PBB and Advertisement Tax. What about the objection or appeal decision if a dispute occurs? What is the possibility of a double billing basis for the self-assessment system?
As we know, apart from the Tax Assessment Letter and SPPT, the basis for tax collection also includes SKPDKB, SKPDKBT, Correction Decree, Objection Decree. Therefore, if the STPD is not paid for the legal product, it will result in a re-determination of the same object.
Case example for official assessment:
Restaurant A submitted an objection to the SKPD for Advertising Tax amounting to 100 million which was issued on January 15 2024. Based on the objection, the tax authority accepted part of it and issued an objection decision with the following calculations;
Advertisement Tax SKPD = IDR 100,000,000.
An objection has been raised and payment has not been made by the Taxpayer.
Objection Decision (partial acceptance = 50 million) = Rp. 50,000,000
Administrative sanction 30% = 7,500,000
Amount = IDR 57,500,000
With the issuance of the Objection Decree, the SKPD for Advertisement Tax is no longer the basis for tax collection. The due date for payment of the Objection Decree is one month from the date of issue. If the taxpayer does not pay on time and an STPD is issued, a new legal product will emerge that does not eliminate the legal product issued by the STPD.
Case example for self-assessment:
Restaurant A reported a Regional Tax Notification Letter (SPTPD) Imposing Certain Goods and Services (PBJT) for the January 2024 tax period with the tax payable that had been paid and reported Rp. 100,000,000.00. Based on the audit, the tax payable in the reported SPTPD should have been 200 million. Calculate the SKPDKB if it is issued on April 28 2025
The inspection was completed in April 2025, on April 28 2025 an SKPDKB was issued to determine the shortfall in PBJT payments for Food and/or Drinks.
SKPDKB PBJT :
- principal Tax underpayment = Rp 100.000.000.
- interest penalty = 25.200.000
(Rp 100.000.000 x 1,8 % x 14 months)
- SKPDKB = Rp 125.200.000
As in the previous case example, if the taxpayer does not pay on time and an STPD is issued, a new legal product will emerge that does not eliminate the legal product issued by the STPD.
What is the tax collection process?
PP 23 concerning General Provisions for Regional Taxes and Retribution emphasizes that collection is a series of actions so that the Tax Insurer pays off Tax debts and Tax Collection costs by reprimanding or warning, carrying out Collection immediately and simultaneously, notifying forced letters, proposing prevention, carrying out confiscation, carrying out hostage taking, and selling confiscated goods. The basis for tax collection is tax debt as stated in the SPPT, SKPD, SKPDKB, SKPDKBT, STPD, Correction Decree, Objection Decree, and Appeal Decision. Tax Collection Basis for which payment or repayment is not due, an appeal can be made. If it is not paid after the due date for payment or repayment, tax collection can be carried out in accordance with the provisions of laws and regulations regarding taxation, namely Law no. 19 of 1997 concerning Tax Collection with Forced Letters as Amended by Law no. 19 of 2000 (PPSP Law).
The PPSP Law stipulates that the authority to appoint officials to collect regional taxes is given to the Regional Head. What is meant by an official for collecting regional taxes is, for example, the Head of the Regional Revenue Service. Officials in the field of tax collection are given the authority to appoint and dismiss Tax Bailiffs, issue Warning Letters, Warning Letters or other similar letters, Immediate and Simultaneous Collection Orders, Forced Letters, Orders to Execute Confiscations, Hostage Taking Orders, Letters of Revocation of Confiscation, Announcements Auction, Limit Price Determination Letter, Cancellation of Auction, or issuing other letters. Other letters required for tax collection include a letter requesting the date and time schedule for the auction to the auction office, a letter requesting a Land Registration Certificate (SKPT) to the National Land Agency/Land Office, a letter requesting assistance to the police or a letter requesting prevention.
A Warning Letter, Warning Letter or other similar letter is issued if the Tax Insurer does not pay off the tax debt by the payment due date. The law does not provide a time limit for when a warning can be issued. This means that as long as it has not expired, billing can still be done. Even the expiry of Tax Collection is postponed if before the expiry period (5 years) a Warning Letter and/or Force Letter is issued. In the event that a Warning Letter and/or Forced Letter is issued as referred to in paragraph (3), the billing expiry date is calculated from the date of delivery of the Warning Letter and/or Forced Letter.
A Forced Letter is issued if the Tax Insurer does not pay off the tax debt and a Warning Letter or Warning Letter or other similar letter has been issued, collection will be carried out immediately and simultaneously; or the Tax Insurer does not fulfill the provisions in the decision to approve installments or postpone tax payments. In the case of immediate and simultaneous collection, the Forced Letter is issued either before or after the issuance of the Warning Letter, or Warning Letter, or other similar letter. Other similar letters include letters or other forms whose function is the same as a Warning Letter or Warning Letter in an effort to collect taxes before a Forced Letter is issued.
In certain cases, for example, because the Tax Insurer is experiencing liquidity difficulties, the Tax Insurer may, on the basis of his request, be given approval to pay in installments or postpone tax payments. The decision in question is binding on both parties so that if the Tax Insurer does not comply with the provisions in the decision to approve installments or postpone tax payments, a Forced Letter can be issued directly without a Warning Letter, Warning Letter or other similar letter.
In the event of circumstances beyond the control of the Official or other reasons, for example, theft, flood, fire or earthquake which causes the original Forced Letter to be damaged, illegible or for other reasons such as the Forced Letter being lost or unable to be found, a replacement Forced Letter can be issued by officials because of their position. A replacement Forced Letter has the same executorial power and legal status as a Forced Letter.
The implementation of the Force Letter cannot proceed with confiscation before 2 (two) times 24 (twenty four) hours have passed after the Force Letter has been notified to give the Tax Insurer the opportunity to pay off the tax debt before the auction of the confiscated goods is held. Auction sales of confiscated goods shall be carried out no later than 14 (fourteen) days after the announcement of the auction through the mass media. The announcement of the auction is carried out no later than 14 (fourteen) days after the confiscation with the frequency for movable goods being done 1 (one) time and for immovable goods being done 2 (two) times. Goods with a maximum value of IDR 20,000,000.00 (twenty million rupiah) do not have to be announced through the mass media. for example, with leaflets or announcements posted in public places, for example at the sub-district office or on the official's office notice board.
In accordance with the provisions in the auction regulations, every auction sale must be preceded by an Auction Announcement. In the case of immovable goods which will be auctioned together with movable goods, the Auction Announcement is made 2 (two) times for immovable goods, 1 (one) time together with movable goods in the first announcement, so that the sale of movable goods can take priority. The presence of an official or his representative in the auction is necessary to determine whether or not the items being auctioned will be released if the bid price submitted by the prospective auction buyer is lower than the specified limit price. In addition, the presence of an official or his representative is also necessary to stop the auction if the auction results are already enough to pay off tax collection costs and tax debt.
Bearing in mind that the auction is a follow-up to the execution of a Forced Letter which has the same status as a court decision which has permanent legal force, even if the Taxpayer files an objection and has not received a decision, the auction can still be carried out. Auctions can still be held without the presence of the Tax Insurer because control of the confiscated goods has been transferred from the Tax Insurer to the Official, so that the Official has the authority to sell the confiscated goods. Considering that the Tax Insurer who owns the confiscated goods has been notified that the confiscated goods will be sold at auction at a predetermined time, the auction can still be held even without the presence of the Tax Insurer. The auction will not be held if the Tax Insurer has paid off the tax debt and tax collection costs, or based on a court decision, or decision of the tax court, or the object of the auction is destroyed. In the event that there is a court decision granting a third party's claim regarding ownership of confiscated goods, or a tax court decision granting the Tax Insurer's claim regarding the implementation of tax collection, or confiscated goods to be auctioned are destroyed due to fire or natural disaster, the auction will not be held even if the tax debt is owed. and tax collection costs have not been paid.
Auction proceeds are used first to pay the costs of collecting unpaid taxes and the remainder to pay tax debts. In the case of auction sales, the tax collection fee is plus 1% (one percent) of the auction principal. Considering that the implementation of tax collection up to the sale of confiscated goods at auction is a long, complicated and risky process, a tax collection fee of 1% (one percent) of the auction principal is an incentive for Tax Bailiffs. In the event that the auction results have reached a sufficient amount to pay off the tax collection costs and tax debt, the auction is stopped by the official even though the goods to be auctioned are still available. The remaining items and excess money from the auction will be sent to the Tax Insurer immediately after the auction. The main objective of the auction is to pay off tax collection costs and tax debt while still providing protection to the Tax Insurer so that the auction is not carried out excessively. Apart from that, it is also to protect the Tax Insurer so that officials do not act arbitrarily when carrying out auction sales. The remaining confiscated goods along with the excess money from the auction are returned by the Official to the Tax Insurer immediately after the Auction Minutes are drawn up as a sign that the auction has been completed.
The Tax Insurer's rights to goods that have been auctioned are transferred to the buyer and he is given the Auction Minutes which is authentic evidence as a basis for registration and transfer of rights. The Auction Minutes, among other things, contain information about how confiscated goods have been sold. As a condition for transferring rights from the Tax Insurer to the auction buyer and also as legal protection for the rights of the auction buyer, he must be given the Auction Minutes which functions as a sale and purchase deed which is authentic evidence as a basis for registration and transfer of rights.
Conclusion
From the description of the collection process above, there is no room for issuing a new assessment in the form of a Regional Tax Bill in the collection process due to non-payment of the tax debt. Tax debts that are not or underpaid will be collected based on the process regulated in the Law on Tax Collection with Forced Letters where the initial effort is a letter of reprimand, warning or other similar letter which is not a determination in an effort to collect before the forced letter is issued. The next process is a collection effort through a forced letter, followed by confiscation and auction until the tax debt is paid off.
Reference :
- Law No. 28 of 2009 concerning Regional Taxes and Regional Levies
- Law No. 1 of 2022 concerning Financial Relations Between the Central Government and Regional Governments.
- Government Regulation Number 35 of 2023 concerning General Provisions for Regional Taxes and Regional Retributions (PP KUPDRD).
- Law No. 19 of 1997 concerning Tax Collection with Forced Letters as Amended by Law No. 19 of 2000