Why Is It Mandatory for Someone to Report Annual Taxes? The Consequences of Not Doing So Could Lead to Fines and Imprisonment

Kapanlagi.com - Did you know that missing the reporting of the Annual Tax Notification Letter (SPT) can have dire consequences for your finances, even threatening your freedom? Every taxpayer, whether an individual or a business entity, needs to understand the seriousness of the consequences that lurk if this tax obligation is ignored.

So, when is the deadline for reporting the SPT? Every year, the deadline is determined by the Directorate General of Taxes (DJP). Reporting the Annual SPT is not just a formality; it is a duty of every citizen who has income above the Non-Taxable Income (PTKP). By reporting, you actively contribute to the nation's development and ensure financial transparency.

However, what happens if you do not report? Based on information compiled by Kapanlagi.com on Tuesday (2/4/2025), the risks faced can be very serious. From fines that drain your wallet to the threat of imprisonment, these consequences should be a concern for all taxpayers.

1. Deadline for Filing Tax Returns to Be Observed

Every taxpayer, whether an individual or a business entity, must file their tax return according to the schedule set by the Directorate General of Taxes. If the deadline is missed, the taxpayer may face administrative sanctions.

Based on the applicable tax regulations, the deadlines for filing tax returns are as follows:

• Individual Taxpayers: No later than March 31 of each year.
• Corporate Taxpayers: No later than April 30 of each year.

If a taxpayer feels unprepared to file their tax return by the deadline, they can apply for an extension. However, this extension must be submitted before the deadline expires, and must still include accurate tax calculations.

Missing the deadline without filing at all will result in the taxpayer receiving administrative sanctions in the form of fines, which will be explained in the following section.

2. Administrative Sanctions: Fines to be Paid

When someone fails to report their taxes on time, the first sanction imposed is an administrative fine. The amount of this fine varies depending on the type of tax return that was not reported.

Referring to tax regulations in Indonesia, here are the fines for late reporting of tax returns:

• Annual Tax Return for Individual Taxpayers: Rp100,000
• Annual Tax Return for Corporate Taxpayers: Rp1,000,000
• Value Added Tax (VAT) Period Tax Return: Rp500,000
• Other Period Tax Returns: Rp100,000

This fine will automatically appear in the tax system and must be paid by the taxpayer before they can submit the pending tax return. If the fine is not paid, it may lead to more severe sanctions.

3. Criminal Sanctions: Risk of Imprisonment for Violators

In certain cases, violations of tax reporting not only result in fines but can also lead to criminal sanctions. The Tax Law in Indonesia stipulates that a person who fails to report their tax return or provides incorrect reports can be prosecuted.

According to Article 39 of the General Provisions and Tax Procedures Law (UU KUP), the criminal threats for violators include:

• Fines of 1-2 times the amount of tax not reported
• Imprisonment for 3 months to 1 year

If the violation is committed intentionally, the penalties can be more severe, namely:

• A minimum fine of 2 times and a maximum of 4 times the amount of unpaid tax
• Imprisonment for a minimum of 6 months and a maximum of 6 years

This tax criminal case is usually applied to taxpayers who intentionally evade taxes by providing false reports or failing to report their actual income.

4. Examples of Tax Violations Leading to Criminal Charges

Behind the scenes of the taxation world, there are shocking true stories, such as revealed in Decision No. 888 K/Pid.Sus/2014 by the Supreme Court.

A defendant was ensnared in legal troubles after repeatedly submitting false tax reports, and as a result, he faced the bitter consequence of a 2-year prison sentence and a staggering fine of Rp2.59 billion.

Not only that, if the fine is not paid, he risks an additional 3 months of confinement. This case serves as a valuable lesson that tax violations are not trivial matters; they can lead someone behind bars and dramatically drain their finances.

5. How to Avoid Sanctions and Address Late Tax Reporting

For taxpayers who are late in reporting their taxes, there are several steps that can be taken to avoid further sanctions:

• Report the Tax Return Immediately: Even if the deadline has passed, it is better to report late than not at all.
• Pay Administrative Fines: If a fine has been imposed, make sure to pay it promptly to avoid accumulation.
• Utilize Tax Consultation Services: If experiencing difficulties in filling out the tax return, taxpayers can consult with tax officers or use the services of tax consultants.
• Use the Online System (e-Filing): The Directorate General of Taxes provides e-Filing services to facilitate taxpayers in reporting their taxes anytime and anywhere.
• Request an Extension if Needed: If you feel you cannot report the tax return on time, request an extension before the deadline expires.

By understanding tax obligations and the consequences of delays, taxpayers can avoid the risk of unwanted fines and criminal charges.

6. Exceptions and Suggestions

Although there are some exceptions in administrative fines, such as for deceased individual taxpayers or businesses that have closed, this must still comply with applicable regulations and be supported by valid documents.

To avoid sanctions and legal issues in the future, it is very important to always report the Annual Tax Return on time. Do not procrastinate on this obligation! If you find it difficult in the reporting process, do not hesitate to seek assistance from a tax consultant or tax officer who is ready to help you.

Managing taxes may seem complicated, but by understanding the consequences of not reporting the Annual Tax Return, you will be more motivated to do it correctly. Remember, tax compliance is our shared responsibility for a better Indonesia.

7. What happens if I don't report taxes for several years?

8. How to pay tax late fees?

9. Are employees with low salaries also required to file taxes?

Yes, as long as you have a Tax Identification Number (NPWP) and income, you are still required to report even if your tax is zero.

(kpl/rmt)