PT. ABC, a company engaged in the trade of air conditioners, located in East akarta. The company has been established since 1990. PT. ABC sells air conditioners while providing conditioning installation services. The company imports air conditioners from abroad or buys air conditioners from several air conditioner factories in the country in 2015, the company started selling to SOE and government agencies as tax collectors, as a result, the company's VAT was more often paid. Previously, the company's sales orientation was only to private companies and individuals In August 2016 the company received SKPKB for under payment of Corporate Income Tax, tax deduction and SKPLB for VAT payment on the material in the SKPK, the company filed an objection, but objections were rejected so that PT. ABC filed an appeal The Objection Decision was issued on February 1. 2017 The material being compared is: A In 2017 the company received SKPKB for 2015 Corporate Income Tax amounting to 15 billion (20) 1. Description Amount According to fin million rupiah PT ABC Difference 200 000 SO 000 170 000 (10 000 200.000 160.000 00.000 450.000 30.000 400 000 10.000 50.000 Income Sales Installation and maintenance income Other income Total 2. Expenses that can be deducted COGS Selling expenses Administrative expenses Other expenses Total load Taxable income Corporate Income Tax 250 000 25.000 10.000 15.000 300 000 100.000 25.000 240.000 22.000 18.000 10.000 290.000 160 000 40.000 10.000 3.000 18.000 5.000 10.000 60.000 15.000 1. Difference in sales recognition because the Tax Office calculates sales based on invoices. According to the company the components included in the sale are 20 billion are maintenance and installation contracts and 30 billion are AC maintenance contracts for 2016. Accounting separates the sales as installation and maintenance income and for 10 billion is recognized in 2016 in accordance with PSAK 23 The KPP calculates the installation and maintenance income based on the contract with the name of the installation and maintenance. The company also recognizes the allocation of installation and maintenance costs from sales transactions of 20 billion itemi) and there are special contracts for maintenance and installation received in cash in 2015 of 10 billion and were only implemented in 2016. 3. Other income differences related to income received from abroad which according to WP is calculated based on cash received in the amount of 15 billion, while according to the KPP the income is the value of dividends received based on evidence of cash recepts of 15 billion KPP analyses the income from the state SSS. Taxes in SSS Countries of 40 or 10 billion are not reported as income tax 24 because at the time the SPT was compiled and the inspection Occurred PT. ABC does not obtain proof of deduction from the UN until the inspection occurs. Evidence of late deduction is given but on April 1, 2017 the Company has obtained proof of withholding the tax payment 4 COGS difference due to companies inserting COGS components to carry out installation and maintenance costs of 8 bilion. Whereas 2 billion is an expense that has been recognized by companies related to product accrual accrued guarantees 5. The burden of sales there is a difference because there are sponsorship activities which according to tax are considered as donations because they are given at the event events organized by government agencies. The company mentioned in the proof of expenditure as a contribution not a Sponsorship even though there was a sponsorship proposal and an achievement contract for the 6. Administrative expenses there is a difference due to the imposition of installation activities and maintenance of air conditioners as administrative expenses 7. Other expenses include differences because there are company activities that are not related to company operations such as directors' official trips, entertainment, community assistance for road and school construction. B. For VAT, the company reports that there is overpayment of 10 billion but the KPP states that the company is underpaid. KPP is based on the equalization of sales value with the expense contained in the report of PT. ABC (5) 1. Description VAT object revenue Submission to the collector Income owed VAT Output VAT VAT Input from Purchases VAT input for maintenance and installation activities VAT payable (overpaid) Amount According to (in million rupiah) PT ABC KPP Difference 410.000 410.000 (160.000) 160.000 250.000 410.000 25.000 41.000 16.000 (24.000) 24.000 (1.000) 1.000 17.000 17.000 PT. ABC bases the value of VAT based on the contract value that has been received so that WP and KPP produce the same basic value of imposition. However, the KPP did not gain confidence in the transaction surrender to WAPU because in previous years the Company did not submit to WAPU. For input VAT related to maintenance activities, it was only carried out in 2015, so far the company has only reported Input VAT from AC purchases. The company at the time of filing an appeal had obtained the SSP document from the submission of WAPU. During this time the company did not ask the company because they did not know if the document was needed. C. The company does not deduct Income tax 21, Income 23 as follows (5): Recognition of a bonus of 500 million, has been recognized as an administrative expense but Income tax 21 has not been recognized and is declared outstanding. Income tax 21 was only recognized by the company when the bonus was paid in April 2016 in the amount of 50 million. Recognition of the vehicle rental expense for transportation of 100 million has been charged but there has been no deduction of income tax by the company by 2 million and was only paid in March 2016. The KPP set a SKP of 52 million based on salary load equalization with. The company in the objection had given the fact that the income tax was only late. Requested: 1. Calculate how much tax you should be owed, you don't need to make a full report, but you can only focus on the corrected item. 2. Analysing the case, what tax planning should be carried out by PT. ABC to prevent similar cases from appearing? 3. Analysing the case, what should the KPP do in order to improve the ability of tax auditors so that similar cases do not appear? PT. ABC, a company engaged in the trade of air conditioners, located in East akarta. The company has been established since 1990. PT. ABC sells air conditioners while providing conditioning installation services. The company imports air conditioners from abroad or buys air conditioners from several air conditioner factories in the country in 2015, the company started selling to SOE and government agencies as tax collectors, as a result, the company's VAT was more often paid. Previously, the company's sales orientation was only to private companies and individuals In August 2016 the company received SKPKB for under payment of Corporate Income Tax, tax deduction and SKPLB for VAT payment on the material in the SKPK, the company filed an objection, but objections were rejected so that PT. ABC filed an appeal The Objection Decision was issued on February 1. 2017 The material being compared is: A In 2017 the company received SKPKB for 2015 Corporate Income Tax amounting to 15 billion (20) 1. Description Amount According to fin million rupiah PT ABC Difference 200 000 SO 000 170 000 (10 000 200.000 160.000 00.000 450.000 30.000 400 000 10.000 50.000 Income Sales Installation and maintenance income Other income Total 2. Expenses that can be deducted COGS Selling expenses Administrative expenses Other expenses Total load Taxable income Corporate Income Tax 250 000 25.000 10.000 15.000 300 000 100.000 25.000 240.000 22.000 18.000 10.000 290.000 160 000 40.000 10.000 3.000 18.000 5.000 10.000 60.000 15.000 1. Difference in sales recognition because the Tax Office calculates sales based on invoices. According to the company the components included in the sale are 20 billion are maintenance and installation contracts and 30 billion are AC maintenance contracts for 2016. Accounting separates the sales as installation and maintenance income and for 10 billion is recognized in 2016 in accordance with PSAK 23 The KPP calculates the installation and maintenance income based on the contract with the name of the installation and maintenance. The company also recognizes the allocation of installation and maintenance costs from sales transactions of 20 billion itemi) and there are special contracts for maintenance and installation received in cash in 2015 of 10 billion and were only implemented in 2016. 3. Other income differences related to income received from abroad which according to WP is calculated based on cash received in the amount of 15 billion, while according to the KPP the income is the value of dividends received based on evidence of cash recepts of 15 billion KPP analyses the income from the state SSS. Taxes in SSS Countries of 40 or 10 billion are not reported as income tax 24 because at the time the SPT was compiled and the inspection Occurred PT. ABC does not obtain proof of deduction from the UN until the inspection occurs. Evidence of late deduction is given but on April 1, 2017 the Company has obtained proof of withholding the tax payment 4 COGS difference due to companies inserting COGS components to carry out installation and maintenance costs of 8 bilion. Whereas 2 billion is an expense that has been recognized by companies related to product accrual accrued guarantees 5. The burden of sales there is a difference because there are sponsorship activities which according to tax are considered as donations because they are given at the event events organized by government agencies. The company mentioned in the proof of expenditure as a contribution not a Sponsorship even though there was a sponsorship proposal and an achievement contract for the 6. Administrative expenses there is a difference due to the imposition of installation activities and maintenance of air conditioners as administrative expenses 7. Other expenses include differences because there are company activities that are not related to company operations such as directors' official trips, entertainment, community assistance for road and school construction. B. For VAT, the company reports that there is overpayment of 10 billion but the KPP states that the company is underpaid. KPP is based on the equalization of sales value with the expense contained in the report of PT. ABC (5) 1. Description VAT object revenue Submission to the collector Income owed VAT Output VAT VAT Input from Purchases VAT input for maintenance and installation activities VAT payable (overpaid) Amount According to (in million rupiah) PT ABC KPP Difference 410.000 410.000 (160.000) 160.000 250.000 410.000 25.000 41.000 16.000 (24.000) 24.000 (1.000) 1.000 17.000 17.000 PT. ABC bases the value of VAT based on the contract value that has been received so that WP and KPP produce the same basic value of imposition. However, the KPP did not gain confidence in the transaction surrender to WAPU because in previous years the Company did not submit to WAPU. For input VAT related to maintenance activities, it was only carried out in 2015, so far the company has only reported Input VAT from AC purchases. The company at the time of filing an appeal had obtained the SSP document from the submission of WAPU. During this time the company did not ask the company because they did not know if the document was needed. C. The company does not deduct Income tax 21, Income 23 as follows (5): Recognition of a bonus of 500 million, has been recognized as an administrative expense but Income tax 21 has not been recognized and is declared outstanding. Income tax 21 was only recognized by the company when the bonus was paid in April 2016 in the amount of 50 million. Recognition of the vehicle rental expense for transportation of 100 million has been charged but there has been no deduction of income tax by the company by 2 million and was only paid in March 2016. The KPP set a SKP of 52 million based on salary load equalization with. The company in the objection had given the fact that the income tax was only late. Requested: 1. Calculate how much tax you should be owed, you don't need to make a full report, but you can only focus on the corrected item. 2. Analysing the case, what tax planning should be carried out by PT. ABC to prevent similar cases from appearing? 3. Analysing the case, what should the KPP do in order to improve the ability of tax auditors so that similar cases do not appear