Indonesia Tax Office Unblocks Accounts After Debt Settlement

The West Sumatra and Jambi regional office of Indonesia's Directorate General of Taxes (DJP) has implemented a strict measure against tax evaders, blocking 571 bank accounts belonging to 50 taxpayers. These accounts collectively hold arrears amounting to Rp70.2 billion. The DJP has outlined three distinct pathways for taxpayers to have their accounts unblocked, emphasizing an accommodative approach within the national tax system.

The primary method requires the full settlement of outstanding tax debts, including any associated collection costs. Alternatively, taxpayers can offer collateral in the form of assets valued equivalent to the total tax owed. For those facing immediate financial constraints, a third option involves submitting a formal request for a tax payment installment plan or deferral, which requires approval from the Head of the local Tax Service Office.

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The national taxation system still provides accommodative settlement space. The account blocking status can be revoked instantly if the taxpayer fulfills the three determined requirements.

Kanwil DJP Kemenkeu Sumbar and Jambi Head, Tarmizi, urged taxpayers with outstanding dues to proactively engage with their respective tax offices. He cautioned that failing to resolve these issues cooperatively could result in more severe legal consequences. These include asset confiscation, public auction of seized assets, travel bans preventing overseas departure, and even detention (gijzeling).

The DJP's actions are guided by Law No. 19 of 1997 on Tax Collection by Forced Letter, as amended by Law No. 14 of 2002, and Ministerial Regulation No. 61 of 2023. The office asserts its commitment to enforcing tax laws, framing it as a measure to protect state revenue and serve compliant taxpayers.

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Cooperative settlement will avoid taxpayers from further severe legal actions.