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International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue X, October 2022|ISSN 2454-6186

Legal Politics of Money Laundering Law on Taxpayer Evasion Cases

 Dr. Imam Ropii, S.H., M.H1* and Umar Said, S.H2
1Lecturer Master of Law, Indonesia
2Master of Law Student, Indonesia

IJRISS Call for paper

Abstract: Lately, some people have misused a tax collection system to benefit themselves. One of them is the misuse of the self-assessment system, this system does not look like its initial goal, namely to improve tax compliance from taxpayers, but taxpayers interpret it as a gap in the implementation of tax avoidance activities. At a practical level, taxpayers can carry out tax avoidance activities such as setting operating costs, goods for sale, transfer pricing, and intercompany pricing, this can be done to minimize or avoid paying taxes. Of course, in the author’s opinion, this is a crime in the taxation sector, and it can even be categorized as an initial crime of money laundering, hereinafter referred to as ML. So that the author aims to conduct this research in order to explore and examine the direction of legal politics with regard to money laundering in the case of taxpayer evasion by using a statutory approach and a conceptual approach. The results of the study show that there is a connection between tax crimes and money laundering offenses, where tax crime is a predicate crime and money laundering is a derivative crime. Where it was also found that the legal political direction of the ML law adheres to the concursus realist principle which in its law enforcement ML is independent, and there is an obligation for investigators to investigate the merger between predicate crimes, in this case, tax crimes and money laundering offenses.

Keywords: Tax Crime, Money Laundering, Legal Politics.


Indonesian Taxation applies several tax collection systems, including the Self Assessment System, Official Assessment System and With Holding Assessment System. The self-assessment system is a tax collection system where the tax burden is determined by the taxpayer. In this case a taxpayer is the one who actively involve in tax calculations, tax payments, and reporting to the Tax Office or by online tax administration system.
The role of the government in this system is to supervise taxpayers, and the self-assessment system applies to central taxes such as Value-Added Tax (VAT) and Income taxes. Indonesia has been implementing this tax collection system since the tax reform period in 1983. However, It lead a big consequence since taxpayers have the authority to calculate their tax payments, thus generally, they will try to deposit as little tax as possible.