The Practice of Tax Evasion on Acquisition Tax of Right on Land and Building

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Syabaruddin Syabaruddin
Rr. Titiek Herwanti
Akram Akram


Shifting the authority to collect the Acquisition Duty/Tax of Right on Land and Building (Bea Perolahan Hak atas Tanah dan Bangunan or BPHTB) from central government to local government is a fiscal decentralization policy currently put in place by the government to strengthen local taxing power. However, the local governments are facing challenges in collecting the BPHTB. The practice of tax evasion is a case in point. This, in Sumbawa Regency, is indicated by the determination of value of BPHTB, which is much lower than it should be. In fact, in many cases it is mostly zero. This study aims to analyze the practice of tax evasion in BPHTB in Sumbawa Regency and factors that influence it. This study uses a qualitative approach and case study research strategy, which is single case embedded design. The findings show that the practice of tax evasion is done by reducing the Acquisition Value of Tax Object (Nilai Perolehan Objek Pajak or NPOP) by duplicating the proof of transaction, and obscuring the conditions of tax object. There are some factors that influence the occurrence of tax evasion, including the probability of tax audit, the level of sanction imposed, and the application of Acquisition Value of Non-Tax Object (Nilai Perolehan Objek Pajak Tidak Kena Pajak or NPOPTKP) in the BPHTB. There are two expected contributions of this study. First, enriching literature on taxation in public sector particularly local taxation and BPHTB. Second, providing input to the local government of Sumbawa Regency to improve the implementation of the BPHTB collection by local government. This, in turn, could minimize tax evasion practices and at the same time optimize the taxation and budgetary function.

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