Tax Attorney

Taxation in Indonesia starts with self-assessment. This means the taxpayers calculate, pay, and report their tax obligations by themselves. Tax authority has 5 years to test the compliance of taxpayers. If the 5-year period is exceeded, the tax report is generally considered correct. In the regulations, there is indeed a provision that allows the tax authorities to test the compliance of taxpayers after 5 years, but it requires reasons that lead to suspected criminal acts in the field of taxation.

If we focus on the 5-year stipulation period, the tax authorities can conduct tax audits with triggers such as taxpayers submitting tax refunds, taxpayers reporting losses in several consecutive years, or tax authorities finding different data from other parties compared to the data reported by taxpayers. In the audit process there may be findings that the taxpayer disagrees with. At this stage, a deep understanding of tax regulations is needed, so that taxpayers can explain these findings appropriately. If the difference of opinions between the tax auditor and the taxpayer can't find agreement, then the submission of a tax objection is an alternative way out.

There are cases where a taxpayer's objection is not granted by the tax authority. According to the regulations, the only next option is to appeal to the tax court. The process in the tax court usually takes quite a long time. Besides the knowledge of the tax attorney, trial experience will be the determining factor for the taxpayer's success in the appeal.