House Passes Bill on Tax Amnesty

After approximately eight months of discussions, the House of Representatives (“House”) finally passed the Bill on Tax Amnesty (“Bill”) on 28 June 2016.This Bill is essentially aiming to boost tax revenues by encouraging better compliance by the public with their various tax obligations. [1] With this goal in mind, the Bill enables individuals and corporate taxpayers to receive pardons for any tax liabilities which may arise from outstanding payable tax, provided that they disclose their assets and also pay certain ransom fees (uang tebusan). The Bill sets out a framework for the enforcement of the tax amnesty, and covers: