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Position Title : Expert on Tax Gap Analysis for Tax Compliance ImprovementLocation : Jakarta, Indonesia (Indonesian Ministry of Finances)Assignment : Individual ContractDuration : 10 man-days (distance or in Indonesia regarding the context)Expertise France is seeking the suitable expert Tax Gap Analysis for Tax Compliance Improvement that deliver comprehensive products designed to support Ministry of Finance, Republic of Indonesia, particularly to Directorate of Tax (DGT) and Fiscal Policy Agency (BKF) in Fiscal Reform Technical Assistance (TA).
PURPOSE- The expert will provide tax analyst knowledges on Tax Gap measurement, tax gap analysis and tax compliance improvement strategies.
DELIVERY- Policy recommendation based on tax gap analysis;- Effective strategies to increase tax compliance. - The Technical Assistance of Indonesia Supporting Fiscal Reform as the cooperation between the Ministry of Finance (MOF), Government of Indonesia (GOI) and The French Development Agency (AFD) is continue to phase 2 to support the MOF in its ongoing fiscal reform and ongoing efforts to improving quality of spending, strengthening revenue administration and enhancing tax policy, which to be implemented in collaboration with BKF and DG Tax.
This second TA Program is set up by Expertise France, which oversees the technical structuring, organising, and monitoring the program, according to the needs expressed by BKF and DG Tax.
iv) improving business processes reengineering and quality of taxpayers services; (v) analysis and methodology of BEPS Program and Automatic Exchange Of Information (AEOI) in collaboration with the OECD.
The tax gap can be defined as the difference between the actual taxes collected and those which would be collected under full compliance.
Consequently, by estimating the tax gap, it is possible to obtain relevant information about the degree of non-compliance and its components for a specific tax or for the tax system as a whole, including its evolution over time.
This information can be essential for tax administrations when deciding how to allocate their resources to improve tax compliance (Shaw et al.
2010). The tax gap is a valuable instrument not only to define enforcement strategies of the tax administration but also to enhance its accountability.
Tax gaps exist primarily because of evasion, thus its calculation entails making an estimation and finding evidence of the invisible (Slemrod and Weber, 2012).
Knowing its extent or its magnitude is relevant; however, it is probably more important to know how it evolves over time.
2) the methodology should be relatively stable over time; and, (3) the data used for the estimation should be available on a periodic basis.
In this manner, estimating the tax gap would make sense as it provides information that would be very useful to the tax administration as a management tool.
The estimation of the tax gap may provide crucial information for the legislators when assessing regulatory changes to get a better understanding of the tax system and the enforcement of the existing tax code.
2) Under-reporting : the net understatement of tax on timely filed returns; and (3) underpayment : the amount of tax reported on timely filed returns that is not paid on time.
The tax gap is also categorized by two (2) types of tax, including (a) Income tax (corporate and individual), (b) VAT (Value Added Tax) or GST (Goods and Services Tax) tax.
It would also raise revenue that would otherwise be raised by increasing tax rates or broadening the tax base. Closing the tax gap would be easier, however, if tax policy did not encourage taxpayers to take advantage of tax preferences or misrepresent income in the expectations of lower tax rates.
and (5) stay up to date with changes in legislation. - The tax administration reform significantly affects the individual taxpayer compliance.
The positive effect of the tax administration reform on individual taxpayer compliance might be due to rapid growth of registered individual taxpayer after the tax administration reform was completed.
That rapid growth was induced by improvement in registration procedure at modernized tax offices, and in the same time taxpayers are willing to report their tax return because filing procedure become easier and faster than before.
The improving reporting requirements would provide more transparency to tax authorities and to taxpayers who may not understand their tax liability.
By improving tax compliance, the tax revenue will increase through tax administration reform. All candidates must hold exemplary and relevant academic credentials and must hold a post-graduate degree in a relevant subject from a leading academic institution.
Individuals will also have at least 7 years of work experience in the field of tax gap measurement. Experience in Indonesia context is preferred.