Changes in the Procedure of Preliminary Investigation for Criminal Acts in Taxation
- December 9, 2022
- Posted by: Administrator
- Category: Tax News
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The Ministry of Finance (“MoF”) has issued regulation No. 177/PMK.03/2022 (“PMK-177”) concerning the Procedures of the Preliminary Investigation for Criminal Acts in Taxation, which revokes the previous regulation, i.e., MoF Regulation No. 239/PMK.03/2014. This regulation serves as the implementation procedures as delegated by Article 43A paragraph (4) of the General Tax Law (KUP).
Salient changes in this new MoF Regulation are as follows:
- The preliminary investigation shall be conducted based on the elaboration and analysis of intelligent activities or other activities. With this term, the MoF affirms that the preliminary investigation may arise not only based on an information, data, reports or complaints, but also from a supervision or tax audit activity.
- If a preliminary investigation is escalated into an official investigation process and the taxpayer voluntarily declares an incorrectness of tax reporting, the settlements of the tax underpayment and its penalty will be considered as a redemption of the state’s loss. Under the previous regulation, only 2/5 (two fifths) of the settlement could be claimed as the redemption; while in PMK-177, 1/2 (one half) of it shall be claimable.
- The attachments of PMK-177 prescribe the template/format for the preliminary investigation instruction letter, report, examples of redemption calculation and so forth.
This regulation was stipulated on 5 December 2022. However, it shall take effect after 60 (sixty) days from the date of stipulation.