Legal Obligations and Enforcement of Financial Transparency and Tax Reporting Regulations in Companies

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Published: 2024-01-20
Keywords:
Financial reporting, Transparency, Governance, Taxation, Business law, Regulatory enforcement, Digitalisation

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Parji Parji
Universitas Sunan Giri Surabaya, Indonesia
Arif Rachman Putra
Universitas Sunan Giri Surabaya, Indonesia
Mochamad Irfan
Universitas Sunan Giri Surabaya, Indonesia
Agung Satryo Wibowo
Universitas Sunan Giri Surabaya, Indonesia
Kurnia Wijaya
Universitas Sunan Giri Surabaya, Indonesia

Abstract

This study analyses the legal obligations of companies in financial and tax transparency reporting in Indonesia using a normative legal approach based on all applicable national regulations. This study outlines the legal basis, corporate management responsibilities, and reporting and disclosure standards that must be met by companies under the Limited Liability Company Law, Capital Market Law, Financial Services Authority Law, and all the latest tax regulations, including regulations on transfer pricing documentation and beneficial ownership transparency. The study found that the legal basis has established a system of openness and integration of commercial and fiscal reporting based on digital technology through the Government Regulation on Financial Reporting and the Directorate General of Taxes' online ecosystem system. However, the effectiveness of regulatory enforcement still depends on the coherence of norms, coordination between supervisory agencies, and the readiness of administrative infrastructure and implementing resources. Regulatory enforcement is optimal when governance synergy, supervisory capabilities, and technology adoption are able to reduce loopholes for violations, facilitate audits, and strengthen a sense of fairness for all stakeholders. This study recommends technical rule refinement, cross-authority data harmonisation, and continuous education as pillars for future improvement. This study provides a theoretical contribution to the development of business law and practical encouragement for policymakers and business actors to interpret transparency and tax reporting as a manifestation of accountability and national competitiveness, thereby strengthening the credibility of the legal system and the business ecosystem in the era of digital globalisation.

Article Details

Issue

Vol. 4 No. 1 (2024): Journal of Social Science Studies (JOS3)

Section

Articles

How to Cite

Parji, P., Putra, A. R., Irfan, M. ., Wibowo, A. S. ., & Wijaya, K. . (2024). Legal Obligations and Enforcement of Financial Transparency and Tax Reporting Regulations in Companies. Journal of Social Science Studies, 4(1), 249-260. https://jos3journals.id/index.php/jos3/article/view/312

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