To audit the tax activities in Indonesia, the Direktorat Jenderal Pajak uses a risk-based method to select returns for audit and can also randomly select candidates for audit. Tax refunds will automatically trigger an opening of a tax audit.
The taxpayer is then expected to submit all documents regarding the request within a month from the date of the request; otherwise, the documents not provided will not be taken into consideration during tax objections.
This process begins with an on–site visitation. After this, the information required is to be submitted in documents. The tax auditor will also pose some questions to the taxpayer and additional documents will be included based on the response provided.
The additional documents should include correlation between tax returns and the financial statement. Also, invoices and other important documents may be manually requested.