How The Pandemic Has Impacted Tax Advisor
Data from the Ministry of Finance states that tax revenue has continued to decline since the Covid 19 pandemic. In September 2020, tax revenue contracted by 16.9 percent when compared to the same period last year.
Deputy Head of Bachelor of Accounting at Swiss German University, Nurdayadi, said that the Covid 19 pandemic had an impact on the economies of all countries in the world. The decline in sales was not only experienced by large companies but also the Small and Medium Enterprises sector.
This condition resulted in decreased state revenue from the tax sector. In fact, as much as 70 percent of state revenue comes from taxes. The government finally closed the deficit in state revenue with debt.
According to Nurdayadi, a tax advisor will still be needed when economic conditions slow down during the Covid 19 pandemic. Currently, the government may rely on debt to finance state operations and tackle the Covid 19 pandemic. However, this will not last forever.
“It is impossible for the government to continue to rely on debt. This means that less affected companies (Covid 19) will be pursued by the government. During this pandemic, there are still many companies that have profits, such as those in the information technology sector, ”said Nurdayadi. He was a speaker in the Webinar Series Accounting and Taxation in the Digital Era organized by the Faculty of Business and Communication Swiss German University, Saturday (14/11/2020).
In fact, the government tends to oversee the payment of taxes from companies that still have this profit. This makes companies need tax advisers or tax consultants.
During the pandemic, the Indonesian government also provided various tax incentives to businesses. This makes companies need tax consultants to be able to take advantage of these incentives optimally.
President of the Tax and Accounting Professionals segment at Thomson Reuters, Charlotte Rushton told that Accountants and tax professionals have played a critical role in keeping the economy going since the beginning of the COVID-19 pandemic. Those who were focused primarily on advisory services were in a better position than most.
“The last eight months have shown that the shift to advisory in the profession is more important than ever,” Rushton said as quoted from Accounting Today, Tuesday (17/11/2020).
He said that the number of incentive programs issued for economic stimulus during the pandemic made many business actors need a consultant. Moreover, many business actors have to cut their employees so that human resources are limited.
The accounting and tax profession has been eyeing the move to focusing on advisory services for a few years, but the sudden and overwhelming need on the part of clients sped up the transition. The need to change to advisory services was significantly accelerated by COVID.
“Instead of having a business based around the seasonality of tax filing, you could have a year-round business with a steady revenue stream. Most important, by engaging in this relationship with your clients, you’re simply doing the right thing. By being there for your clients, you’re enabling them not just to strive, you’re helping to put them in a position of strength in the future,” he said. ***