Implementation of Agile Methodologies in Developing Upstream Land and Properties Tax Reporting System to Mitigate Tax Sanction Risk: Case Study: KKKS XYZ

Abstract

: This thesis aims to develop upstream land and properties tax reporting system to mitigate tax sanction using a case study of KKKS XYZ, an upstream company which signs oil and gas production sharing contract under pre-PP No. 79 Tahun 2010 regime. Under this regime, the company has an obligation to report its land and properties tax every year and to pay the tax due using overbooking procedure. In recent year, KKKS XYZ receives several Notice of Tax Underpayment Assessment after the tax examination by the fiscus found incorrect land and properties reported data in KKKS XYZ's tax report. The company should bear the tax fine by its own liability since it cannot be charged as an operating cost that can be recovered by the government. A complete and accurate land and properties reporting system are needed to mitigate the risk of future tax sanctions. In this study, we will develop a tax reporting system using six steps of system development developed by Satzinger et al. (2012) through agile methodologies and model-driven approach. Specifically, we use process modelling technique and system tools such as interview and Flowchart. The system development process will be implemented iteratively.