Based on the results of examinations carried out by the Directorate General of Tax (DGT), a tax assessment letter will be issued, which can result in the tax payable being underpaid, overpaid, or zero. If the taxpayer does not agree, he can file an objection to the said decision. Furthermore, if not satisfied with the objection decision, the Taxpayer can submit an appeal. The final step that can be taken by taxpayers in tax disputes is a review to the Supreme Court.
Taxpayers have the right to file an objection to a tax assessment by submitting an objection in writing to the Director General of Taxation no later than 3 months from the date the tax assessment letter was sent or from the date of withholding or collection unless the Taxpayer can show that the period of time cannot be fulfilled because circumstances beyond his control.
Regarding the objection, the Director General of Taxes will give the decision no later than 12 (twelve) months after the objection letter is received.
Conditions for filing an objection are:
- Submit an objection letter to the Director General of Taxes c.q. Head of the local Tax Service Office on SKPKB, SKPKBT, SKPLB, SKPN, and withholding and collection by third parties.
- Submitted in writing in Indonesian by stating the amount of tax due according to the calculation of the Taxpayer by stating clear reasons.
- Objections must be submitted within 3 (three) months of the tax assessment letter, unless the taxpayer can show that the period cannot be fulfilled because it is outside his control.
- Objections that do not meet the above requirements are not considered objections, so they are not considered.
In the event that a Taxpayer submits an objection to a tax assessment letter, the Taxpayer must pay the tax that must be paid at least the amount that has been approved by the Taxpayer in the final discussion of the results of the examination, before the objection letter is submitted.
- It should be noted that if the Taxpayer’s objection request is rejected and the Taxpayer does not submit an appeal, the Taxpayer will be subject to administrative sanctions in the form of a fine of 50% (fifty percent) of the amount of tax based on the objection decision less the tax paid before submitting the objection.
Read too : Construct a Strong Reason for Objection
If the Taxpayer is still not satisfied with the Decision on the Objection of the objection he filed, then the Taxpayer can still appeal to the Tax Court.
Terms of appeal are:
- An appeal is submitted in writing in the Indonesian language within 3 (three) months of the objection decision being received, enclosing the Objection Decision letter.
- Against 1 (one) Decision submitted 1 (one) Letter of Appeal.
- The Tax Court must determine the decision no later than 12 (twelve) months after the Letter of Appeal is received. In the event that an appeal is rejected or partially granted, the Taxpayer is subject to administrative sanctions in the form of a fine of 100% (one hundred percent) of the tax amount based on the Decision of Appeal less the payment of tax paid before filing an objection.
If the Taxpayer is still not satisfied with the Decision of Appeal, the Taxpayer still has the right to submit a Review to the Supreme Court. Requests for Reconsideration can only be submitted 1 (one) time to the Supreme Court through the Tax Court. Submission of a PK application shall be made no later than 3 (three) months from the date of the discovery of deception or deception or since the decision of the Judge of the Criminal Court obtains permanent legal force or the discovery of new written evidence or since the appeal is sent.
The Supreme Court makes decisions within a period of 6 (six) months after the PK application is received.
Source : https://pajak.go.id/