THE SIGNIFICANCE OF ETHICS IN BALI’S TAX CONSULTING PROFESSION

THE SIGNIFICANCE OF ETHICS IN BALI’S TAX CONSULTING PROFESSION

Taxes are a crucial component of Indonesia’s development, providing the majority of the country’s revenue. The government is implementing changes in the taxation sector, which affect taxpayers’ compliance. This has caused confusion among taxpayers, leading to an increased demand for tax consultant services. Tax consultants play a crucial role in the tax system. This is because the government frequently makes changes to taxation, and certain aspects of taxation are necessary to maintain stability and facilitate healthy and dynamic interactions between taxpayers and the government, in accordance with government tax regulations. As a tax authority, the government must make efforts to ensure effective implementation. Tax consultants play a crucial role in complying with the professional code of ethics governing tax consultant services. Their aim is to ensure and increase taxpayer compliance with the tax regulations set by the Indonesian government.

The tax consultant code of ethics is a set of professional values that every tax consultant in Indonesia must reference when carrying out their role in the tax system. It is important for consultants to adhere to these guidelines to maintain professionalism and integrity in their work. Indonesian Tax Consultants Association (IKPI= Ikatan Konsultan Pajak Indonesia) regulates how consultants should behave, interact with colleagues and work partners, and publish materials related to their duties. Tax consultants, in compliance with the code of ethics, act as liaisons between taxpayers and tax authorities without showing any bias towards one party over the other.Compliance with the code of ethics is a fundamental aspect of professionalism. A tax consultant in Bali or Indonesia must be committed to their profession and adhere to the provisions outlined in the tax consultant code of ethics to be considered a professional. Compliance is not only a moral obligation but also necessary to avoid sanctions for violating the code of ethics. Tax consultants must comply with the professional code of ethics established by their professional organization. In the practical work of tax consultants, breaching the professional code of ethics can lead to consequences for violating tax regulations.  This risk is even higher if taxpayers and tax officials are involved, particularly if the latter collude to reduce the amount of tax owed to the state. Some cases of tax violations that occur due to non-compliance between taxpayers and tax officials that have occurred in Indonesia. For example, one case related to unethical decision making by tax consultant officers in Indonesia, is the involvement of tax officials in helping taxpayers who are being examined to commit fraud. The tax fraud case above shows a negative impact that is very detrimental to the state.

Aside from criminal offenses resulting from violations of the code of ethics, tax consultants often overlook other equally important ethical violations. For instance, consultants may engage in mutual interference with each other as they compete for clients, which is clearly regulated in the Articles of Association or Bylaws of IKPI regarding the Tax Consultant Code of Ethics. Tax consultants who fail to comply with the professional code of ethics, along with taxpayers seeking to minimize their tax liability, can contribute to tax fraud. Additionally, tax officers may also play a role in supporting such fraud. To ensure tax consultants fulfill their dual role as partners of taxpayers and the government in a professional manner, comprehensive efforts are necessary. This includes synergising with IKPI to supervise the activities of tax consultants, taking an active role in educating and helping taxpayers solve their various tax problems, and integrating sanctions for violations of the tax consultant code of ethics into the law. Any violation of the code of ethics will be subject to sanctions in accordance with those stipulated in the IKPI Articles of Association. This is based on the implications of violations of the code of ethics that are clearly detrimental to the state.

Based on the cases that have occurred, tax consultants in Bali and Indonesia must exercise greater caution when making decisions and adhere to the professional code of ethics for tax consultants. Failure to comply with the government-established code of ethics may result in sanctions as outlined in the code. The sanctions for breaching the tax consultant code of ethics include an ordinary written warning for minor violations and a severe written warning for serious or repeated violations. In cases of serious violations, temporary dismissal may be imposed for a certain period. Do not disregard or disrespect the provisions of the code of ethics. If you receive a strong written warning letter for violating the code of ethics, do not repeat the violation. Committing a violation of the code of ethics with the intention of damaging the image and dignity of the tax consultant profession, which is a noble and honorable profession, will result in permanent dismissal. It is important to uphold the honor of the profession. Tax consultants must comply with the code of ethics that applies to their profession.