LEGALITY ASPECT REGIONAL TAX COLLECTION

Taxes are public contributions to the State that are based on laws and regulations and are coercive, where the contributions are used to finance state expenditure in realizing state objectives". The tax sector as a source of state revenue has a strategic function for state revenue, state revenue from tax collection requires the least cost compared to other ways of obtaining state revenue, for example with foreign loans. Tax collection will succeed maximally if supported by 3 things namely; self awareness of taxpayers, the professional capabilities of tax officers (fiscus) and the expertise of the tools used in collecting tax debt. Regional tax which is a tax levied by the regional government with regional authority and used for regional income. In the process of collecting local taxes, of course, based on the General Conditions of Taxation, which is the basis for every tax collection in Indonesia. The possibility in determining the determination of tax debt there is a discrepancy in the value of the tax debt either due to the negligence of the taxpayer in reporting the calculation of tax debt or tax error in determining the tax debt, then to resolve the dispute both the taxpayer and piscus are both obliged to obey the provisions applies namely the General Taxation Provisions Act (KUP). The law starts with RI Law No.6 of 1983 and is further refined with RI Law No.9 Th 1994, RI Law No. 16 of 2000, most recently Act No. 28 of 2007.

Tax from the concept is, the transfer of wealth from the private sector to the public based on a law that can be forced by not getting compensation or public contributions to the state treasury (transfer of wealth from the private sector to the government sector), based on the law with no lead services turnover is used to finance general expenditure and is used to achieve goals outside of State finances.

Moving on in terms of the authority of tax collection and the legal basis for the use of taxation, taxes can be classified as central and regional taxes. Local tax is a tax that is the authority of the regional government both in terms of planning, up to its use for the area. Local tax from the concept A. Some: "constitutes, state tax which is submitted to the region and declared as local tax by law". When compared with the provisions of Law Number 28 Year 2009 concerning Regional Taxes and Regional Levies, Article 1 number 10:

"Local taxes are mandatory contributions to regions that are owed by individuals or entities that force nature based on the law by not getting a direct reward and are used for regional purposes for the greatest prosperity of the people"

Local tax is one of the important income for the region, so it is necessary to make arrangements to get results in accordance with the targeted, and still reflect a sense of justice.

Local tax is one of the important income for the region, so it is very necessary to make arrangements to get the results in accordance with the targeted. The concept of regional autonomy has inspired regions to explore the potential of financial resources in their regions. Based on Article 18 paragraph (5) of the 1945 Constitution of the Republic of Indonesia it is stated: "Regional governments carry out the broadest possible autonomy except governmental affairs which by law are determined as the affairs of the Central Government".

Regional government affairs include matters related to the authority to make regional policies to provide services to increase community participation and empowerment initiatives aimed at improving community welfare. In carrying out their regional functions, each region has a relationship with the government.

and with other regional governments, this is based on the provisions of Article 18 paragraph (1) of the 1945 Constitution of the Unitary Republic of Indonesia which states:

"The unitary state of the Republic of Indonesia is divided into provincial regions and the provincial regions are divided into regencies and cities, which each province, regency and city has regional government regulated by law."

So the autonomy referred to in the implementation of the state is autonomy that is in the corridor of the unitary state of the Republic of Indonesia. The state recognizes the existence of each region and at the same time maps out the existence of rights owned by regional communities that have certain boundaries and has the authority to manage their own affairs based on their aspirations.

The guarantee of recognition of the existence of the region in the 1945 Constitution of the Unitary State of the Republic of Indonesia provides protection for the regions when the regions exercise autonomy, especially in the fair use of natural resources and other resources, this is confirmed in Article 18 paragraph (2) which states: "Relations finance, public services, utilization of natural resources and other resources between the central government and regional governments are regulated and carried out fairly and in accordance with the law ".

Changes to decentralization and the relationship between the center and the regions have given greater authority to the regions to carry out the tasks of regional government which must be followed by the provision of funds. The authority in carrying out regional autonomy is mentioned in Article 21 of Law Number 32 of 2004 wherein the region has the right ... to collect local taxes ... ... this provision is further regulated in Article 12.

Paragraph (2) Law Number 23 of 2014 concerning Regional Government, which regulates compulsory Government affairs which are not related to basic services, one of which is to manage the environment in the region. So in general it can be stated, that the regional government has the authority to collect local taxes as a consequence of regional autonomy, namely to receive regional income as development costs in the region. Local tax, is a tax that is regulated by local governments which is done by levies to the local community. The term regional tax was unified with regional retibution originally regulated by Law Number 18 of 1987, then refined to become Law 34 of 2000 and finally replaced by Law Number 28 of 2009. With the issuance of the Law on Taxes and Retribution Regions, regions are given greater authority than before in the handling of taxes and regional levies in line with the enactment of Law Number 32 of 2004 and the Central and Regional Financial Balance Act, especially in expanding the tax base or object and determining the tax rate. the expansion of authority in the regulation of regional taxes and levies such as regulating land and building tax, land acquisition and building tax, swallow nest tax and cigarette tax, but the region still pays attention not to cause the regional tax and retribution to cause high economic costs and / hinder population mobility, la inter-regional traffic of goods and services, avoiding inter-regional tariff wars and disrupting export-import activities.

Article 2 of Law No. 28/2009 concerning Regional Taxes and Charges states that regional tax types are classified as Provincial and Regency / City Taxes;

(1) Types of Provincial Taxes consist of:

a. Vehicle tax

b. Transfer of motor vehicle fees

c. Motor Vehicle Fuel Tax

d. Surface Water Tax; and

e. Cigarette Tax

(2) Regency / City Tax Type:

a. Hotel Tax

b. Restaurant tax

c. Entertainment Tax

d. Advertisement tax

e. Street lighting tax

f. Non-Metallic Mineral and Rock Taxes

g. Parking Tax

h. Groundwater Tax

i. Swallow Bird Nest Tax

j. Rural and Municipal Land and Building Tax

k. Fees for Obtaining Land and Building Rights

Giving wider authority to the regions to regulate regional taxes and levies is in the context of strengthening regional financial revenues. The tax that can only be collected by the state is one of the government's interventions in the economic field with the aim of providing social protection, because society needs social protection from the risks of poverty, health, and the risk of unemployment in the long run.

Debate whether the Central Government or local governments can organize social security, according to Gramlich; It is the central government that is more efficient in organizing it because actually the people gather centrally due to urbanization / mobility of people between regions, whereas according to Buchanan; that income redistribution can be carried out effectively if it is done by the regional government, because the regional government knows the needs and types of local public goods. From a practical point of view, the role of local government in Indonesia can be considered very dominant since the era of regional autonomy, so that the regions themselves must be able to be more independent in carrying out development in their regions. Based on the tax function as a (financial) budgeter, efforts are needed to increase tax revenues. One way that local tax collection can be achieved according to the target is to conduct an orderly tax administration for taxpayers and tax officials, especially for the type of tax that ends.

Pursuant to Article 28 of Law Number 28 Year 2007 concerning General Provisions and Tax Notes, it is confirmed:

(1) Personal taxpayers carrying out business activities or free work and corporate taxpayers in Indonesia are required to keep books

(2) Exempted from the obligation to keep books as referred to in paragraph (1), but are obliged to keep records, are taxpayers of individuals who carry out business activities or free work according to the provisions of the taxation laws allowed to use the Norms of Net Income Calculation and Taxpayers A private person who carries out business activities or free work.

In every business unit in the form of personal or business entity, there will always be records of the flow or in and out of goods or services that can ultimately be transformed, business records that are arranged and detailed are often referred to as business books. Tax provisions define what is meant by bookkeeping, namely, Bookkeeping is a process of recording that is carried out regularly to collect financial data and information which includes assets, liabilities, capital, income and costs as well as the acquisition and delivery price of goods or services that are closed with the compiler of financial statements in the form balance sheet and income statement for each tax year ends.

The obligation to keep bookkeeping is more aimed at taxpayers who are related to the Income Tax Law and the Value Added Tax Law. The use of books and records is a guide for taxpayers to determine the amount of tax owed or used as the basis of tax payable, as well.

can function as evidence of a letter if a tax dispute occurs, both outside and inside the Tax Court institution. Bookkeeping is obliged to refer to several requirements determined by legislation in order to have a common standard. The requirements are: based on good faith, and reflecting the actual business situation, held in Indonesia using Latin letters, Arabic numerals, and rupiah currency units, arranged in Indonesian language or in a foreign language permitted by the Minister of Finance. Accrual system is a method of determining the calculation of income and costs in the sense that income is recognized when it is earned and costs are recognized when they are due. So do not use the calculation of profits and costs at the time of concrete (cash). Cash system is a method whose calculation is based on income received and costs paid in cash.

The bookkeeping or recording function of business activities is very useful in determining the basic calculation of the tax liability of the taxpayer himself by the taxpayer and for testing the tax debt carried out by the tax man. In the Regional Tax and Retribution, the obligation to make books / records is regulated in Article 169 paragraph (1): Taxpayers who conduct business with a turnover of at least Rp. by law.

In meeting the tax revenue target the tax officer is obliged to carry out activities to ensure obstacles that cause a decrease or not achieving the tax target in the sense that the number of tax recipients is not supported by the number of taxpayers.

this is known as a tax audit. Based on Article 29 of Law Number 28 Year 2007 concerning General Provisions on Taxation stated:

(1) The Director General of taxation has the authority to conduct audits to test compliance with the taxpayer's tax obligations and for other purposes in carrying out taxation

(2) For compliance with inspection, the examining officer must have an inspector's ID and be accompanied by an inspection warrant and show it to the taxpayer examined.

The purpose of the Audit is to test compliance with the fulfillment of tax obligations by:

1. Notification letter showing overpayment of tax and / or compensation

2. Notification letter that is not delivered or delivered on time

3. Data and or information in the letter of notification deviates from fairness

4. There are indications of other tax obligations.

The authority to audit regional taxpayers is carried out by the regional government as stipulated in Article 170 paragraph (1) of Law Number 28 Year 2007: invitation for regional taxation and user fees. "

Examination that examines the fulfillment of tax obligations must be carried out by tracing the truth of the notification, bookkeeping / recording and fulfillment of other tax obligations. The ways that can be done by:

1. Applying examination techniques that are commonly used in examinations in general (complete inspection)

2. Applying inspection techniques with simple weights and depth in accordance with the examination room both in the Office and in the field (simple)

While the other purposes of tax audits are:

1. For granting NPWP position

2. Elimination of NPWP

3. Revocation / confirmation of the taxable entrepreneur

4. Objection of taxpayers

5. Proposal of materials for the compilation of net income calculation norms

6. Matching data and / or information tools

7. Determination of taxpayers in remote areas

 From the provisions of the article above it can be underlined that the examination of taxpayers includes / regarding the tax debt required, the authority is carried out by the Director General of taxation. The Director General of Taxes checks the type of central tax, while the examination of regional taxes and regional levies is carried out based on the authority of the regional government, which subsequently appoints the Regional Head by the Regional Revenue Service.

Based on Article 1 Point 75 of the Law on Regional Taxes and Levies it is stated:

Examination, is a series of activities to collect and process data, information, and / evidence carried out objectively and professionally based on an inspection standard to test compliance with the fulfillment of regional tax obligations and levies and / for other purposes in the context of implementing the provisions of regional tax laws and regulations regional retribution ".

As for inspection sites generally include, audits conducted at the tax office examiner's office by collecting document material that is examined and inspection in the field at the taxpayer's business activities. In the act of inspection by the tax official, the examinee has legal obligations:

1. provide an opportunity for officers to enter a place / space that becomes a place / business to store books, records, documents and movable or immovable property which can provide guidance on the circumstances related to the income of the business.

2. Submitting data relating to business circulation in the form of, cash flow, flow of goods, monthly reports, bank statements, shares and assets owned both at home and abroad

3. Provide other information related to third parties in their business activities.

In audits conducted by tax officials, it is obligatory to make reports of audit results which include: reports made in the form of concise and clear details about; the scope of the purpose of the examination, the conclusion of irregularities / not and disclose the relevant information and if related to the examination of tax returns, the inspection document must contain; comparison factor, value<