DGT Circular Letter No. SE-74/PJ/2015 dated December 4, 2015
IMPLEMENTATION OF INDONESIA SUPREME COURT VERDICT NO. 73 P/HUM/2013 CONCERNING JUDICIAL REVIEW ON ARTICLES IN GOVERNMENT REGULATION NO. 74 YEAR 2011 CONCERNING PROCEDURES FOR TAX RIGHTS AND OBLIGATION IMPLEMENTATION
Supreme Court has annulled several articles in Government Regulation No. 74 Year 2011, as consequences several articles in Minister of Finance Regulation, DGT Regulation and DGT Circular Letter are also void.
Topics which have been annulled are:
- Verification implementation;
- Interest compensation on appeal verdict which has been appealed for reconsideration;
- Legal action on tax Underpayment assessment letter;
- Tax assessment which cannot be appealed to tax court;
- Time span for settling objection on verdict.
Verification implementation
Verification implementation in order to issue tax assessment letter has been replaced with examination for testing tax obligation compliance.
Ex-officio rights to issue Taxpayer Identification Number (NPWP), cancel NPWP, confirm taxable entrepreneur and cancel taxable entrepreneur confirmation have been replaced with examination for other purposes.
Verification in order to confirm taxable entrepreneur as requested by taxpayer has been replaced with review and confirm business location and activity of taxpayer.
Verification in order to refund overpayment tax has been replaced with review the accuracy of tax payment.
Interest compensation on appeal verdict which has been appealed for reconsideration. Petition for reconsideration filed either by taxpayer or DGT will not suspend interest compensation as long as taxpayer already meet all requirements for interest compensation. When the reconsideration verdict resulting interest compensation should be repaid, such amount would be collected along with reconsideration verdict implementation.
Legal action on Tax Underpayment Assessment Letter
Tax Underpayment Assessment Letter issued under article 13A General Taxation Provisions and Procedures law can be filed for objection which in previous regulation was unavailable.
Tax assessment which cannot be appealed to tax court. Taxpayer may file an appeal for the following decision or assessment letter which previously is not allowed.
- Tax assessment letter issued in accordance with the procedures;
- Correction decision letter;
- Objection statement issued in accordance with the procedures;
- Administrative charges reduction decision letter;
- Annulment on administrative charges decision letter;
- Decision letter on reduction of tax assessment letter;
- Decision letter on annulment of tax assessment letter;
- Decision letter on preliminary refund of tax overpayment.
Time span for settling objection on verdict. When taxpayer file an appeal to tax court on statement from DGT which mention taxpayer objection is rejected, 12 months period for settling the objection will be suspended effective on from the date of statement from DGT to tax court verdict received by DGT.
This circular letter will be effective on promulgation date.