The Digital Supervision Cycle of Taxpayer Material Compliance in the Coretax Era (From Initiation to Final Follow-Up)

Welcome to a new era of tax administration. With the introduction of the Coretax system and its integration with the Early Warning System (EWS), the taxpayer supervision process now operates in a digital cycle that is transparent, measurable, and highly automated. Every step taken by a tax officer—from targeting a taxpayer to issuing a final assessment—is now clearly recorded within the system.

For those who wish to understand this supervision workflow comprehensively from start to finish, here is a step-by-step guide based on the Standard Operating Procedure (SOP) for Material Compliance Research at the Tax Service Office (KPP) Level.

PHASE 1: The Initial Step – Case Creation and Team Assignment

Everything begins here. A supervision case is "born" and assigned to a team at the Tax Service Office (KPP) through the system.

1. Two Paths for Case Creation

• Collaborative DSP4 Path: Derived from the Supervision Priority List (DPP) formulated by the Compliance Committee. The Head of Section simply selects a Taxpayer from the list and clicks "Create Case".
• Manual Path: For urgent matters outside the DPP, the Head of Section can manually create a case via the Case Management menu in Coretax by filling in the mandatory fields.

2. Appointing the Officers

The selection of examiners is not random. The system displays employee recommendations based on HRIS data. The Head of Section appoints a Team Leader and a Team Member. Once saved, the system automatically sends an assignment notification to the selected officers' Coretax accounts. At this point, the Team Member must generate the Supervision Assignment Letter (Surat Perintah Pengawasan).

PHASE 2: The "Kitchen" Analysis – EWS and Coretax Integration

After obtaining legal authorization, the Team Member begins dissecting the data and formulating the Research Working Paper (Kertas Kerja Penelitian / KKPt).

1. Determining the Research Type

The system classifies research into three levels of complexity, which correspond to the taxpayer's Compliance Risk Management (CRM) profile:

• Comprehensive (High Complexity): Covers all types of taxes (All Taxes) or high-risk taxpayers.
• Simple (Medium Complexity): Covers one or several types of taxes.
• Automatic (Low Complexity): Simple data clarification for low-risk taxpayers.

2. Executing the Working Paper in EWS

The Team Member creates a Working Paper framework in Coretax, which then triggers the creation of a spreadsheet (XLS) file in the EWS application. The officer downloads this file, inputs the analytical figures (corrections), and uploads it back to EWS for a tiered approval process (Member ➔ Leader ➔ Supervisor).

3. The Golden Rule: Syncing Back to Coretax

This is highly crucial! Once approved in EWS, the officer must return to Coretax, open the Working Paper Overview menu, and click the pencil icon followed by "Save" to ensure the numbers from EWS are transmitted to Coretax. If this step is forgotten, the subsequent document creation process will guarantee to fail.

PHASE 3: Translating Analysis – Draft LHPt and SP2DK Issuance

The numbers in the working paper are now translated into legal narratives and official documents: the Research Result Report (LHPt) and the "Love Letter," SP2DK.

1. Formulating the Draft LHPt

The officer fills in the narrative for Indications of Non-Compliance and the legal basis for the corrections. The sentences typed here will be prepopulated directly into the SP2DK letter read by the Taxpayer. The officer must also fill in the contact number table so the Taxpayer can easily reach them.

2. Electronic Signatures and Approvals

• LHPt & Working Papers: Requires 4 layers of approval (Member, Leader, Supervisor, Head of Office).
• SP2DK: Signed only by the Head of Office. Once the Head of Office gives the final approval, the SP2DK is automatically sent to the Taxpayer Portal account and the respective email address.

PHASE 4: Communication Dynamics – Responses and BAP2DK

The moment the SP2DK lands in the Taxpayer's portal, a 14-day countdown timer begins.

1. Monitoring Responses

The Coretax system monitors in real-time whether the letter has been read (Unread/Read). The Taxpayer can send a response letter (PDF) directly via the Taxpayer Portal or hand it over at the KPP service counter. Once the letter is received, the case status changes to "Completed". If the 14-day period expires (specifically for comprehensive research), the officer can grant another 14-day extension.

2. Discussion Invitation

If the response requires a face-to-face or online meeting, the officer generates a Discussion Invitation directly from the system. This invitation is issued with an electronic seal without the need for tiered approval and "flies" directly to the Taxpayer's portal.

3. Drafting the Minutes (BAP2DK)

The agreed-upon results from the discussion are bound in the BAP2DK. The officer inputs the final correction value, creates a Word document, prints it, and signs it manually (wet signature) alongside the Taxpayer. The scanned PDF document is then uploaded back into Coretax (using the exact same filename).

Note: The BAP2DK agreement results must be re-inputted into the "Main Level" of the EWS working paper (Second Upload) and synced back to Coretax.

PHASE 5: The Spearhead – LHP2DK and Final Follow-Up

The main cycle concludes with the P2DK Result Report (LHP2DK), which acts as the trigger engine for subsequent business processes.

1. The Payment "Gap" Logic

• If the Taxpayer pays in full (Gap = 0), the case can be closed without potential (Case Closed).

2. Follow-Up Recommendations

If there is still a "Gap" (the Taxpayer disagrees or has not paid), the system makes it mandatory for the officer to choose one of the following escalations:

• Tax Audit Proposal (Pemeriksaan): To calculate the tax on a pro-justitia basis.
• Preliminary Investigation Proposal (Bukper): If there are indications of a tax crime. The system sends this proposal to the Law Enforcement (Gakkum) unit, which has a 5-day Service Level Agreement (SLA) to respond.

There are also Additional (Administrative) Recommendations, such as proposing a change in Taxpayer status, ex-officio PKP appointment, cancellation of legal products, or revocation of Land and Building Tax (PBB) registration. Once the Head of Office approves the LHP2DK, the case is finished, and the proposals automatically flow to the relevant units.

PHASE 6: Extra Conditions – Reassignment & Field Visits

In the field, the ideal workflow above may encounter dynamics, which Coretax accommodates through special Sub-Processes.

1. Reassignment

If the Supervisor or Team is transferred midway, the Head of Office can initiate a team reshuffle via the Reassignment LO menu. The newly formed team must click "Sync Officer to EWS" in Coretax to unlock and access the previous team's research documents in the EWS application.

2. Taxpayer Field Visit

If deemed necessary, officers can visit the Taxpayer's location by creating a Visit Assignment Letter. This bypasses the Team Leader's approval and goes directly to the Supervisor and Head of Office. The Head of Office signs it using the NADINE system. The results of the visit are documented in a wet-signed Visit Minutes with the Taxpayer and concluded with a digital Visit Result Report (LHK).

Conclusion

The integration of Coretax and EWS has made the DJP's material supervision far more structured, transparent, and less prone to administrative errors. The digital trail is recorded from the Head of Office's approval, analytical discussions by tax officers, and cooperative arguments with the Taxpayer via the portal, to the issuance of final proposals such as tax assessments or audits. For Taxpayers, this is a tangible manifestation of a more responsive and modern tax legal certainty.