Cooperative compliance gives special treatment to compliant

DDTC founder Darussalam wrote in his 2025 book “Tax Reform Ideas: Safeguard the Economy, Secure Revenue” that the cooperative compliance approach grants special treatment to compliant filers. The statement emphasizes collaboration instead of confrontation between tax authorities and taxpayers.

Cooperative compliance (a collaborative tax administration method) involves tax authorities working jointly with compliant filers to fulfill obligations. It replaces litigation (court proceedings) with mitigation (administrative dispute resolution).

Adoption of this model could speed up tax settlements, lower administrative costs, and boost overall compliance. Both the government and taxpayers stand to gain from a more efficient and constructive process.