The Emergence of Tax Disputes
General Explanation of Law No. 14 of 2002 concerning Tax Courts (PP Law) in the first paragraph explains that:
“The implementation of tax collection that is not by the Taxation Law will cause injustice to the taxpayer community so that it can lead to a Tax Dispute between the taxpayer and the authorized official”.
Tax Dispute
Article 1 point 5 of the PP Law provides an official understanding of the Tax Dispute as follows:
“Tax Disputes are disputes arising in the field of taxation between taxpayers or Tax Insurers and the Authorized Officials as a result of the issuance of decisions that can be appealed or prosecuted to the Tax Court based on tax legislation, including lawsuits over the conduct of billing under the Forced Tax Collection Law “.
Appeal or Lawsuit?
- Appeal
An appeal is a legal remedy made by a taxpayer or a tax guarantor against a decision that can be appealed based on applicable tax legislation.
- Lawsuit
A lawsuit is a legal remedy that can be carried out by a taxpayer or tax guarantor for the implementation of tax collection or for decisions that can be filed for a lawsuit based on the applicable tax legislation.
Settlement Process
- The objection resolution process is carried out by the tax authorities:
The central tax is handled by the Directorate General of Taxes
Customs by the Directorate General of Customs and Excise
Regional Tax by the relevant Regional Government - The process of settling appeals and lawsuits by TAX COURT.