Implementing Regulation on the Governance of Tax Application Service Providers

s Gunawan
s Davira Rizky Chairunnisa
By Gunawan, Davira Rizky Chairunnisa
Gunawan
Davira Rizky Chairunnisa
The Director General of Taxes has issued a new regulation on the procedures for the implementation of notifications, supervision, penalties, and deregistration of tax application service providers (Penyedia Jasa Aplikasi Perpajakan/PJAP). These provisions are outlined in Circular No. SE-48/PJ/2021 concerning Guidelines for the Implementation of the Obligation to Submit Notification, Supervision, Penalties, and Deregistration of Tax Application Service Providers (SE-48/2021).
 
SE-48/2021 constitutes an implementing regulation of the Director General Regulation No. PER-11/PJ/2019 as amended by Director General Regulation No. PER-10/PJ/2020 concerning Tax Application Service Providers (PER-10/2020). This regulation has been issued to improve the efficiency and effectiveness of PJAP governance. In general, four important points are stipulated under SE-48/2021.
 
First, procedures for the processing of the notification obligation. In this case, PJAP must notify the Director General of Taxes within 10 working days from the implementation of the following five activities:
  1. cooperation in providing tax applications and/or supporting applications with other parties;
  2. termination of cooperation in providing tax applications and/or supporting applications with other parties;
  3. addition of services of providing supporting applications;
  4. termination of services of providing supporting applications; and/or
  5. changes in the structure of management and/or share ownership.
Second, procedures for supervision. In this context, the Directorate of Information and Communication Technology (ICT) shall supervise the fulfillment of PJAP requirements. In the supervision process, the Directorate of ICT may coordinate with other directorates according to employee assignment requests. The supervision is carried out at least once a year within a maximum period of four months.
 
Supervision consists of two types, namely routine supervision and supervision for certain purposes. Routine supervision is carried out on all PJAP in the same period and notified using a notification letter of PJAP routine supervision. Supervision for certain purposes, on the other hand, is carried out for PJAP indicated of violating the requirements and/or violating the provisions on obligations and prohibitions of PJAP.
 
Supervision for certain purposes is carried out based on the information and/or recommendations from work units within the DGT and/or information from taxpayers or other parties. Further, based on the minutes of supervision, the Directorate of ICT prepares an official memorandum of recommendations for follow-up supervision.
 
Third, procedures for penalties. PJAP proven to have violated the fulfillment of requirements and/or obligations as well as prohibitions shall be subject to administrative penalties in the form of a warning, temporary suspension of some activities, temporary suspension of all activities, and/or deregistration of PJAP.
 
Administrative penalties are imposed on the PJAP by considering the level of error and/or violation as well as the arising consequences against the legality aspect, the smooth and secure tax services aspect, the consumer protection aspect, and the public service image aspect.
 
PJAP shall be subject to a penalty in the form of a warning if, based on supervision results, it is known that the administrative requirements and/or obligations and prohibitions of PJAP are not fulfilled. Details of the requirements and/or obligations and prohibitions of PJAP are stipulated in detail in Article 3 of PER-10/2020 and Article 12 of PER-10/2020. If the PJAP is subject to a penalty in the form of a warning, the DGT will issue a notification letter of a warning penalty within a maximum period of 5 working days after the official memorandum of recommendations for follow-up supervision is signed.
 
Next, the PJAP is subject to a temporary suspension of some activities if said PJAP does not meet the technical requirements as a PJAP and has been sanctioned in the form of a warning, but does not re-fulfill the stipulated requirements. The technical requirements are related to the fulfillment of service quality standards and/or provisions on the preparation of service use agreements between PJAP and taxpayers.
 
In the event that the PJAP is subject to such a penalty, the Directorate of ICT will temporarily close the channel that connects the PJAP with the DGT for certain services. The Directorate of ICT will test the fulfillment of technical requirements and/or the provisions on obligations and prohibitions if the PJAP has re-fulfilled the said requirements. If the test results show that the PJAP has re-fulfilled the technical requirements and/or obligations and prohibitions, the temporary suspension will be terminated by the Directorate of ICT.
 
All activities will be temporarily suspended for PJAP that has been subject to a warning and/or has committed a crime in the field of taxation and/or a crime in the field of information technology. In the event that PJAP is subject to such a penalty, the Directorate of ICT will temporarily close the channel connecting PJAP with DGT for certain services provided by PJAP. If the PJAP has complied with the requirements and/or provisions on obligations and prohibitions, the Directorate of ICT will test the fulfillment of these provisions.
 
The penalty shall be terminated in the event that test results show that the PJAP has re-fulfilled the violated requirements. Further, if based on the minutes of the test of compliance with the provisions, the PJAP is stated to re-fulfill the requirements and/or provisions on obligations and prohibitions, the Directorate of ICT will terminate the penalty of temporary suspension of all activities.
 
PJAP may also be subject to a penalty in the form of PJAP deregistration. The penalty is imposed if the PJAP is undergoing preliminary investigation and/or investigation of a tax crime and/or has been convicted within the last 5 years for committing a tax crime. In addition, the deregistration penalty is also imposed if the PJAP does not fulfill the obligations and prohibitions of PJAP and/or has been subject to a penalty in the form of temporary suspension of some activities or temporary suspension of all activities.
 
In the event that the PJAP is sanctioned with PJAP deregistration, the Directorate of ICT will carry out a follow-up process. The follow-up process refers to the closing of the channel that connects PJAP and DGT and the preparation of minutes of the closing of PJAP channel.  The PJAP must subsequently report the termination of activities in writing to the Director General of Taxes no later than 10 working days from the date of deregistration.
 
The written report is attached by documents of the settlement of rights and obligations to related parties, including therein data and credentials related to taxpayers as users of relevant PJAP services to the DGT. In addition, PJAP must submit a letter stating that all claims arising after the termination of activities as PJAP are the management’s sole responsibility.
 
Fourth, procedures for PJAP deregistration. At their own request, PJAP appointed by the Director General of Taxes may apply for PJAP deregistration. The application is submitted in writing no later than two months before the date of termination of activities as PJAP. If a decision on PJAP deregistration has been issued, the Directorate of ICT will close the channel connecting the PJAP and DGT. This regulation has been effective as of 6 September 2021.