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Abstract

This study aims to determine the maturity level of fraud risk management in the tax payer compliance supervision function at the head office level run by VW and the XYZ units. The Enterprise Anti-Fraud Maturity Assessment Model was implemented to provide a clear picture of conditions and effectiveness, as well as the existing gaps between the implementation and ideal conditions based on the principles of COSO Fraud Risk Management. The descriptive qualitative research uses a case study approach by collecting data from semi-structured interviews with 12 informants involved in risk management and fraud risks handling, then all documents are analyzed. As for the data analysis technique, content analysis is selected. The purpose of this study is to provide a tool for DGT (The Directorate General of Taxes) to determine the role and level of fraud risk management in the taxpayer compliance supervision function. The results which are at level 2 (initial) indicate that there is still a lot of room for improvement in order to achieve the desired maturity level target. DGT, especially the VW unit and XYZ unit, are suggested to immediately integrate fraud risk management with the existing anti-fraud programs and strengthen the role of the units involved in accordance with the COSO (Committee of Sponsoring Organizations) Fraud Risk Management principles.

Keywords

Fraud Risk Management Fraud Risk Tax Compliance Maturity Level

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Author Biography

Agustinus Nicholas L Tobing, University of Indonesia

Born in 1978. Obtained a Bachelor's degree (S1) in Economics from FEB UI in 2000, a Master's degree (S2) Rotterdam Bussines School, Rotterdam, and a Dr. degree (S3) Pelita Harapan University Indonesia in 2022. His certification titles are Certified Internal Auditor (CIA), Certified Fraud Examiner (CFE), Certified Risk Management Assurance (CRMA), Business Continuity Certified Planner (BCCP), Chartered Accountant (CA), Registered Accountant, Certified Compliance and Risk Professional (CCRP), Qualified Risk Governance Professional (QRGP), Certified Anti Money Laundering Specialists (CAMS), Global Information Assurance Certification (GIAC), ASEAN CPA, and Certified Cloud Practitioner - Amazon.

Currently active as Audit Committee of PT Wicaksana Overseas International Tbk (WICO), Risk Monitoring Committee of Deposit Insurance Corporation (LPS), Audit Committee of PT Sarana Multi Infrastruktur (Persero), Audit Committee of Institute of Internal Auditor (IIA) Indonesia and also as Country Lead at PT Amazon Web Services (AWS) Indonesia, Regulatory Industry & Security Assurance (RISE) and also as Independent Commissioner at PT ITSEC Asia since March 2023. Previously he served as Chief Compliance Officer/VP PT AIA Financial Indonesia, Chief Compliance Officer/VP PT Sun Life Financial Indonesia, Chief Risk and Compliance Officer & PT Commonwealth Life Indonesia, GM Internal Audit PT Bakrie Telecom Tbk, Associate Director of Risk Management and Internal Audit & BDO Indonesia, Head of Operational Risk Management & PT Bank BII Maybank Indonesia Tbk, Head of Operational Risk Management & PT Bank Bumiputera Indonesia Tbk.

How to Cite
Wibawa, A. T., & Tobing, A. N. L. (2023). Maturity Level of Fraud Risk Management in Tax Institutions in Indonesia. Ilomata International Journal of Tax and Accounting, 4(3), 584-598. https://doi.org/10.52728/ijtc.v4i3.765

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