“The taxpayers’ trust on, or the complexity of the tax system may play a role in determining their choice of committing an evasion,” said Rong Qian, a senior economist at the World Bank, at the report launch event in Jakarta on Monday.
At least one in four firms in Indonesia evaded tax last year, according to a World Bank survey.
The survey, highlighted in the bank’s December edition of Indonesia Economic Prospects report, showed that tax evasions in Southeast Asia’s largest economy were likely influenced by the companies’ perception of a common practice in the system and administration.
