Bali Tax Consultant’s challenges During the Digital Era

Bali Tax Consultant’s challenges During the Digital Era

 

A tax consultant is a person or party who has the credibility to provide tax consulting services to taxpayers. A tax consultant who is legally engaged in services is a person who has a valid license or permit. The permit is issued by a government agency to become a registered tax consultant. Consulting services provided by tax consultants are the implementation of rights and obligations regarding taxation arising from tax laws and regulations. The taxation system in Indonesia implements a self-assessment system. This system automatically makes it easier for taxpayers to apply and manage their tax obligations. In general, most taxpayers are more focused on profits and business than paying attention to various tax regulations and authorities. In line with the progression of technology and the evolving demands of the public, there has been a notable increase in the level of awareness regarding the fulfillment of reporting and tax obligations in accordance with the government’s stipulated regulations. However, this compliance is often limited by a lack of understanding of tax calculations or time constraints to deal with all tax-related matters.

At present, a significant number of individual and corporate taxpayers opt to utilize the services of tax consultants, with the objective of expeditiously finalizing their tax affairs. Such taxpayers are required to submit information, pay consulting fees and await the outcomes of the tax consultant they have selected. The decision to hire a tax consultant can be beneficial for taxpayers by enhancing efficiency and minimizing errors or risks. By delegating tax administration matters to a tax consultant, taxpayers can avoid the burden of reporting requirements, as the consultant will manage all aspects of the process. In the event of a future tax audit, taxpayers may seek assistance from tax consultants. These consultants are also tax advisors due to their reliability. They possess in-depth knowledge of audit procedures and are well-versed in preventing errors, ensuring a smooth and efficient experience for their clients.

The duties of tax consultants can be seen as follows:

• Provision of consultancy services

A taxpayer who becomes a client can easily contact the tax advisor for all tax-related questions.

• Provision of tax compliance services

The tax consultant handles various issues related to the client’s tax obligations ranging from information preparation, calculation, payment to tax reporting returns.

• Tax planning

Tax consultants provide client tax planning services with the aim of optimizing client income, including the preparation and production of annual reports by tax advisors.

• Assisting the SPT (Surat Pemberitahuan Tahunan or Annual Tax Return) audit process

The following task of the tax consultant is to assist clients in evaluating various information related to the occurrence of tax burdens that are detrimental to the client company.

• Representation and assistance in the examination process

Tax consultants also have the task of representing or assisting clients during tax audits. This is usually on the basis that the client does not understand the tax issues they are facing. The consultant also assists in the preparation of information or documents required for the audit process.

• Managing tax returns

The tax consultant plays a pivotal role in the implementation process, from preparing information and presenting reports to submitting audit stages and final results, and overseeing the refund of excess tax.

• Assist in resolving issues related to tax disputes

Tax consultants are able to provide tax dispute resolution services, which typically arise when their clients have complaints or tax disputes.

In the current digitalization era, tax consultants in Bali are required to keep up with the latest developments. Digitalization is the process of transitioning from analogue to digital technology. The development of technology has a significant impact on subsequent processes, leading to modernization in various industries. These industries rely on technologies to support their operations. Digitalization aims to enhance the efficiency and effectiveness of every aspect of the business, ensuring the optimal use of time and resources to achieve maximum profit. This transition process is also intended to facilitate everything necessary for users of services and products. The range of services resulting from this process is expected to enhance user loyalty and the value of the event. Digitalization is not merely about replacing human labour with technology; it is also about how companies can create automated and integrated systems. Tax consultants must remain at the forefront of developments in the digitalization era to avoid becoming obsolete.

A key challenge that tax consultants in Bali face in carrying out their duties is dealing with non-compliant taxpayers. The consultant’s role involves providing education, clarifying the implications, and informing clients of the potential risks associated with tax audits. The community is provided with clear guidance on how to pay taxes in an economically viable manner without compromising compliance with the relevant regulations. It is important to note that all taxpayers, including individuals and companies, have a mandatory obligation to pay and report taxes. In terms of taxation, the government has introduced an independent tax system. This system empowers taxpayers to manage their own taxes. This approach is consistent with all applicable tax regulations. The complexity of taxation rules, from tax calculation to tax reporting, can present a significant challenge. This emphasizes the crucial need for taxpayers to seek the expertise of tax consultants.

By utilizing the expertise of a tax consultant in Bali, taxpayers can ensure that their rights and obligations are fulfilled, thereby preventing errors in tax calculation and reporting. Here, clients can access specialist tax advice from professionals with extensive knowledge in the field. Entrusting tax matters to tax advisors can provide peace of mind and allow taxpayers to focus on the growth and development of their companies and businesses. Meanwhile, utilizing tax advice has become an option for many people. Not only for individuals or personal taxpayers, but also for corporate taxpayers. Using tax advisory services is more efficient and practical in handling tax obligations. Because various questions and problems related to taxation can be resolved more precisely in accordance with applicable tax regulations. The use of tax advisory services also helps taxpayers with tax audits.

The core function of a tax consultant is to guide clients in optimizing their tax savings without compromising compliance. Tax consultants must be proficient in imparting tax education, as taxes represent mandatory contributions to the State. These contributions have a nature that is essentially “imposed”. Digitalization is an essential process to implement, and therefore, it is imperative for every tax consultant to possess competent technology-related skills and capabilities. The implementation of digitalization has enabled tax consultants to enhance the effectiveness and efficiency of their operations. This assertion is exemplified by IBU Consulting Tax Consultant Office, where IBU Consulting has successfully integrated digital solutions to support the tax reporting and calculation system in the contemporary digital era.