ENHANCING TAX LAW ENFORCEMENT: A STRATEGIC APPROACH FOR STRENGTHENING TAX CRIME INVESTIGATIONS IN INDONESIA
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Abstract
Tax crimes in Indonesia have been rising steadily in recent years. Despite the Directorate General of Taxes (DGT) efforts to address this, its investigative powers remain limited. The Organization for Economic Cooperation and Development (OECD) highlights the need for tax agencies to have comprehensive investigative powers to combat tax crimes effectively. However, current legislation prevents the DGT from fully complying with these principles. This research employs qualitative methodology with descriptive, comparative, and normative-empirical legal approaches and emphasizes the need for the DGT to gain sufficient investigative powers. Our findings show that the DGT lacks crucial authorities, such as the power to arrest individuals, intercept communications, and directly submit investigation warrants and files to prosecutors. We recommend enhancing the DGT’s powers by adopting practices from the Directorate General of Customs and Excise (DGCE), the Corruption Eradication Commission (CEC), and international tax agencies.
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