A tax dispute is a dispute in taxation between a taxpayer or a tax insurer against an authorized official as a result of a decision issued which can be resolved through an appeal or a lawsuit to the Tax Court (PP).
The definition was expressed by Dr. Mohammad Wangsit Supriyadi, S.E., M.A.B. namely the Tax Court Judge in the virtual public lecture of the Department of Fiscal Administration which took place on Tuesday (27/4/2022).
This public lecture began with remarks from Dr. Inayati, M. Si, Head of the Department of Fiscal Administration, Faculty of Administrative Sciences, University of Indonesia (FIA UI) as well as moderator of this public lecture, said that the Tax Court is an institution that plays an important role in resolving tax disputes at the Indonesian Tax Court.
“Hopefully what we will discuss can provide us with the provision to have a better experience, especially for students who want to work as consultants, companies, or others,” he said.
Then Dr. Mohammad Wangsit Supriyadi, S.E., M.A.B. namely the Tax Court Judge initiated the submission of the material “Tax Dispute Resolution in the Tax Court” by stating that tax collection in Indonesia adheres to a self-assessment system (Taxpayers/WP are given the trust to determine and calculate their own tax obligations and report and pay, without waiting for a determination from tax office.
“In order to provide legal certainty, the tax authority, in this case the Directorate General of Taxes, has the authority to determine the tax payable reported by taxpayers through a fraud mechanism,” he explained.
However, Wangsit continued, the tax determination is sometimes not accepted by taxpayers, resulting in tax disputes. Then, in his explanation, Wangsit described a tax dispute settlement scheme.
Furthermore, Wangsit explained that the types of taxes in dispute include taxes managed by the Central Government, namely the Directorate General of Taxes (PPh, PPN, PPnBM, PBB in addition to rural and urban areas, and stamp duty), taxes managed by the central government, namely the directorate general of customs and excise. (import and export duties and excise duties), and taxes managed by the government, both provincial taxes and district/city taxes.
After that, Wangsit explained that the Tax Court is a judicial body that exercises judicial power for taxpayers or tax bearers who seek justice (seeking justice) in tax disputes.
“The position of the Tax Court in the National Judicial System is to be a special judicial body within the State Administrative Court. And the decision of the Tax Court is final and permanent and is directly subject to review by the Supreme Court.
After that, Wangsit explained the mechanism for filing an appeal, filing a lawsuit, as well as the tax court procedural law which is a formal law in taxation.
The event ended with a question and answer session where Inayati as the Head of the Fiscal Dept as well as the moderator this time also asked questions. “ Why are so few regions using the Tax Court to resolve tax disputes? Is there any effort from the Tax Court to get closer to taxpayers in blood?” he asked.
Wangsit replied by saying that the Tax Court had tried to hold a trial outside the domicile to get closer to justice seekers.
“Trials outside this domicile have been opened in Yogyakarta and Surabaya and will be continued to other blood. In addition, it is currently being developed for the trial using electronic devices through virtual meetings,” he concluded.