A Critical Review of Criminal Punishment for Tax Offenses in the Enforcement of National Economic Criminal Law

• Wahyu Widodo & Edy Gunawan
• 2025
• Hukum

This book offers an in-depth analysis of the many challenges in addressing economic crime in Indonesia, such as tax evasion, money laundering, corruption, and financial fraud. These crimes not only cause significant financial losses but also threaten national economic stability and erode public trust in government institutions. One of the principal issues examined is the weakness in the application of criminal tax sanctions, particularly the structure of criminal fines, which is considered insufficiently effective in recovering losses to State revenue. Restructuring this sanctions system is therefore regarded as essential to create a genuine deterrent effect and to protect the interests of the State optimally.

From a theoretical standpoint, the book draws on the economic theory of crime, which portrays crime as a rational decision in which offenders weigh economic benefits against the risk of punishment. This perspective underscores the urgency of robust law enforcement, effective regulation, and public education to reduce opportunities for crime. The analysis also takes into account the socio-economic and psychological factors that influence the effectiveness of punishment. The authors further integrate the economic analysis of law through cost-benefit analysis, behavioral theory, and the concept of Pareto efficiency in order to develop tax criminal regulations that are fairer and more efficient. Beyond formal approaches, the book presents restorative justice as an alternative that pays greater attention to the restoration of victims, the rehabilitation of offenders, and community harmony. The principle of ultimum remedium, which allows for non-judicial resolution through administrative mechanisms, is also discussed as an effective solution that has shown positive results in Indonesia.

Finally, the book recommends revising tax criminal regulations to make them firmer, more transparent, and oriented toward recovering losses to State revenue, thereby striking a balance among deterrence, social justice, and economic efficiency.