Allow me to start by saying right off that I am all for fair taxation so long as it is consistent, applicable to all, and that tax revenues are spent for the greater good of all citizens…and not subject to corruption.
I can also add just a note that anyone living here long enough has witnessed what I have witnessed…that being an ever increasing endeavor on the part of the government (national and provincial) to increase tax revenues…and this endeavor has taken various approaches.
A new move recently afoot here in Ubud by our tax folks is the required installation of software with direct connection links to the tax office by cash registers in restaurants, and hotels. These direct connections/links are apparently to the printer of these registers…meaning that the local regency tax office will have a direct record of all receipts printed by said registers. How that is done is in itself the subject of an entirely different post…but that's the goal.
Details are scanty at best, and as usual whenever anything “new” is initiated…full of rumor and disinformation.
Ironically (and Bali is belly full of irony), the very first restaurant in Ubud to be targeted for this “intrusion” is the only restaurant in Bali to have ever won an award from the tax office for being “100% compliant and paid all taxes.”
Is that the way to reward 100% compliance to tax law?
In the event that some government folks read this forum (and I know for certain that some do), my message is simple:
A) Don't bite the hand that feeds you.
B) Go slowly…step by step, lest you put out of business those companies which employ lots of local Indonesians.
C) Don't rely solely on internet accumulated data.
I specifically mention item C because another “move afoot here” is to require all tax filings to be done via internet.
That alone is a very bad idea. As an option…fine, but as the only way…not so fine.
Come on guys! Indonesia is generally defined by a great degree and appreciation of “common sense.” Lose that…and you'll lose much more than you are currently thinking about.
So, that's my 2 cents of advice for the day. Gladly, I am retied, so none of this has a bit of impact on me personally.
Taxes, Taxes, and More Taxes
Welcome to Indonesia.
Everyone here long enough know what it means to be really in Indonesia and to live and deal like Indonesian. There are tons of controversies every year.
Everything moves at a snail pace. High economy costs. And what the pinky finger does, the thumb or the backside doesnt necessarily know.
Good luck changing the system. Once an idea took hold, it will take years or ages to implement.
And welcome to Indonesia to you too! 
I write this sort of stuff now and then for the benefit of my brother in law who holds a seat on the DPRD. He claims that the feedback is useful.
The fact is, negative feedback to proposed changes in legislation has proved to be useful in the past...but I guess you'd have to be aware of how things work in the government to understand that. 
I doubt this relevant in the slightest but some of the Indonesians I work with completed their tax returns online and were required to input a personalised number which they never had as the local tax office told them they didn't need one.
They did and our employer sorted it out and it was done very quickly.
My wife again had no issues.
The online tax system should be simpler or more honest. Veering off topic, the Jakarta police are now introducing online fine payment services which again could improve the service and honesty.
Online services are becoming more and more useful and will become more accessible to more people as Indonesias internet becomes more open and easy to use and robust.
'Sent by phone as I can't get internet to my house' but still...
Luke, for filing personal taxes, on-line reporting should be OK since the actual reporting is rather simple.
However, for businesses…no. There are far too many variables and nuances.
Everyone I know in business here agrees that while the visits to the tax office are time consuming and a royal pain, there are advantages to the face to face discussions and “negotiating.”
Ironically, the Indonesian tax reporting form 1770 is almost a direct copy of the US tax form 1040…and that isn't by coincidence!
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