Taxes, Taxes, and More Taxes

Allow me to start by saying right off that I am all for fair taxation so long as it is consistent, applicable to all, and that tax revenues are spent for the greater good of all citizens…and not subject to corruption.

I can also add just a note that anyone living here long enough has witnessed what I have witnessed…that being an ever increasing endeavor on the part of the government (national and provincial) to increase tax revenues…and this endeavor has taken various approaches. 

A new move recently afoot here in Ubud by our tax folks is the required installation of software with direct connection links to the tax office by cash registers in restaurants, and hotels.  These direct connections/links are apparently to the printer of these registers…meaning that the local regency tax office will have a direct record of all receipts printed by said registers.  How that is done is in itself the subject of an entirely different post…but that’s the goal. 

Details are scanty at best, and as usual whenever anything “new” is initiated…full of rumor and disinformation.

Ironically (and Bali is belly full of irony), the very first restaurant in Ubud to be targeted for this “intrusion” is the only restaurant in Bali to have ever won an award from the tax office for being “100% compliant and paid all taxes.” 

Is that the way to reward 100% compliance to tax law?

In the event that some government folks read this forum (and I know for certain that some do), my message is simple:

A)    Don’t bite the hand that feeds you.
B)    Go slowly…step by step, lest you put out of business those companies which employ lots of local Indonesians.
C)    Don’t rely solely on internet accumulated data.

I specifically mention item C because another “move afoot here” is to require all tax filings to be done via internet. 

That alone is a very bad idea.  As an option…fine, but as the only way…not so fine.

Come on guys!  Indonesia is generally defined by a great degree and appreciation of “common sense.”  Lose that…and you’ll lose much more than you are currently thinking about.

So, that’s my 2 cents of advice for the day.  Gladly, I am retied, so none of this has a bit of impact on me personally.