Reformulation of Tax Dispute Resolution in Indonesia

Abstract

The researcher focuses on research the tax disputes arising from the issuance of tax assessment (SKP) central taxes administered by the Directorate General of Taxation, Ministry of Finance. Authors interested in researching tax dispute considering in the last decade there was an increase in the number of tax disputes that the dispute is highly significant, if in 2005 there were only 2,613 files received into the Tax Court, in 2015 tax disputes paid were 12.486 files^[1], or it increases more than fourfold. There should be a solution for the increase of number of tax disputes that is very significant to avoid the accumulation of case with a very great number of case that in the end will be difficult to resolve by the Tax Court, so that the settlement of disputes in the form of decisions that provide justice for the parties of lawsuit cannot be determined immediately, it is contrary to human nature that crave the justice.The arrangement of tax dispute resolution, it is done in stages ranging from objections to the Directorate General of Taxation, the Appeal to the Tax Court and Review to the Supreme Court. The dispute resolution is a win-lose, so that the party that is defeated will always feel dissatisfied and do further legal remedies if it is necessary until the last legal remedy in the form of judicial review (PK).Settlement of disputes by the rules that is set out in legislation currently requires a long time, because it is based on the principle of legality in accordance with the theory of the constitutional state, the implementation of dispute resolution should be based on applicable legislation, the completion of objections during the twelve (12) months, the completion of the appeal during 16 (sixteen) months and a review during six (6) months. In addition, the dispute resolution needs costs that are not cheap because to raise objection the taxpayers must pay first the taxes owed in SKP that the correction value of tax is approved. For the appeal, it also requires the taxpayer to pay 50% of the tax due, beside that the Tax Court is only at Jakarta and place of the hearing only at Yogyakarta and Surabaya, so for the taxpayers who are far away from that location for example from the area of central and east Indonesia, it will take much time and cost to attend the court of appeal for several times.Dispute resolution is not simple, it takes very long time so that it needs expensive cost that is contrary to the sense of people justice, especially justice for taxpayers who are seeking justice in the resolution of tax disputes. The writer proposes a solution to the settlement of tax disputes primarily through alternative dispute resolution (Alternatif Penyelesaian Sengketa (APS)) in the form of mediation, so that the litigation effort is a last legal remedy if the mediation does not reach an agreement. Mediation is done by the expert of mediator and the independent, therefore the writer recommend that the government establish the institution for dispute resolution and tax mediation (Badan Penyelesaian Sengketa dan Mediasi Pajak (BPSMP)) which is a non-ministerial government institution that have a duty to research and decide the tax objection and become the independent mediator in a tax dispute. This institution is needed considering the existing arrangements all this time give authority to the Directorate General of Taxation to investigate and decide the objections of taxpayers, while that institution is the institution that make SKP and it is responsible for reach the tax revenue target.

Keywords: Tax, Regulation, Reformulation, Tax Dispute Resolution

[1] Berdasarkan data statistik Pengadilan Pajak (diolah).