Proceedings of the International Conference on Environmental Law and Mining Law, ICTA II-MIL 2023, 21st October 2023, Pangkalpinang, Bangka Belitung, Indonesia

Research Article

Formulation of Tax Law Policy Based on Cooperative Compliance in Preventing Tax Avoidance in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.21-10-2023.2343546,
        author={Tian  Handoko and Andri  Yanto and Jeanne Darc Noviayanti Manik},
        title={Formulation of Tax Law Policy Based on Cooperative Compliance in Preventing Tax Avoidance in Indonesia},
        proceedings={Proceedings of the International Conference on Environmental Law and Mining Law, ICTA II-MIL 2023, 21st October 2023, Pangkalpinang, Bangka Belitung, Indonesia},
        publisher={EAI},
        proceedings_a={ICTA II-MIL},
        year={2024},
        month={3},
        keywords={cooperative compliance; formulation self assessment; tax avoidance},
        doi={10.4108/eai.21-10-2023.2343546}
    }
    
  • Tian Handoko
    Andri Yanto
    Jeanne Darc Noviayanti Manik
    Year: 2024
    Formulation of Tax Law Policy Based on Cooperative Compliance in Preventing Tax Avoidance in Indonesia
    ICTA II-MIL
    EAI
    DOI: 10.4108/eai.21-10-2023.2343546
Tian Handoko1,*, Andri Yanto2, Jeanne Darc Noviayanti Manik3
  • 1: Master of Law, Bangka Belitung University
  • 2: Faculty of Law, Bangka Belitung University, Indonesia
  • 3: Master of Law Study Program, Faculty of Law1
*Contact email: tianhandoko.pgk90@gmail.com

Abstract

Tax avoidance is a latent problem in the tax system in Indonesia. The self-assessment system allows taxpayers to avoid tax to minimize the value of wealth transfer to the state. This condition creates potential losses with reduced state revenue from the tax sector. This research uses the juridical-normative method to examine favorable laws and regulations and their comparison with scientific theories and concepts to find the ideal formulation of tax regulation using a corporate compliance approach. Based on the results of the analysis, it is known that cooperative compliance is an approach that is compatible with the needs of optimizing tax compliance in Indonesia. The development of modern legal scholarship has encouraged a paradigm transformation to be more humanist, collaborative, and mutual.