Businesses fear delays from special tax refund audits
The 2027 State Budget Law passed Tuesday gives the finance minister authority to conduct examinations and special audits of state revenue collection, which companies worry may hold up tax refunds and hurt their cash flow.
Concerns are growing among businesses over potential delays in receiving tax refunds due to new special audit provisions outlined in the recently passed 2027 State Budget Law. The legislation grants the finance minister authority to conduct examinations and audits of state revenue collection, including refunds for excess tax payments, a move that companies worry may disrupt their cash flow and operations.
The new audit authority, operating at the top level of the Finance Ministry, could potentially extend approval times for tax refunds, as businesses grapple with the added uncertainty. While the government seeks to close tax loopholes through this more aggressive approach, businesses express worry that it could impact their operations and financial stability.
Article 37 of the law permits the government to conduct joint audits through a special mechanism, adding another layer of scrutiny to the existing oversight by the Tax Directorate General. Detailed regulations on how these audits and refunds will be handled are expected to be outlined in a pending Finance Ministry regulation.
Shinta Kamdani, from the Indonesian Employers Association (Apindo), warned that while the government's intentions are not questioned, the added time required for these audits could have a major impact on companies' cash flow.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
