Tax Litigation Services in Indonesia

Why tax litigation services in Indonesia are important

Law Number 14 of 2002 concerning the Tax Court regulates the Tax Court Law, and tax disputes count as the large majority of court cases in Indonesia.

Tax litigation serves as an appealable order or claims against the tax court under applicable regulations regarding taxation between taxpayers and the official in charge. The case usually includes claims against tax collection conducted by forced warrant.

Tax Court cases might pose challenges to some entrepreneurs in running their businesses. Therefore, opting for tax litigation services in Indonesia is important to keep your company free of compliancy charges in tax and financial matters.

When do you need a tax litigation service?

There are many tax disputes that can be brought as tax court cases. Therefore, a company may use a tax litigation service or an external tax litigation attorney in Indonesia to ensure that the case is run through the proper law accordingly.

In assessing taxpayers’ compliance, tax audits are often conducted. However, auditing can only be legally done within the statutory limitation of 5 years after the date of a tax becomes payable or after the end of a tax period, a fraction of a fiscal year, or a fiscal year.

During the audit period, disputes may arise. For example, the Directorate General of Taxes (DGT) finds that the tax disclosed in the tax return is incorrect. The company may hire a tax litigation service to prove the right claim or choose a tax appeal.

Taxpayers can submit a court appeal within three months of receiving the DGT’s audit decision. However, before submitting the appeal, taxpayers must pay at least 50% of the tax payable required by the Tax Court law. To ensure the fairness of the tax appeal process, a tax litigation service or tax litigation attorney is needed to represent.