The government and Commission XI of the House of Representatives has discussed the fifth amendment legislation bill to Law No. 6 the Year 1983 on General Provisions and Procedures for Taxation (KUP Draft Bill). One of the articles contained in the draft bill is Article 27. The article added explanations related to the Judicial Review.

 

Reasons for Submission of Judicial Review

 

Judicial Review can be submitted if the Taxpayer is not satisfied with the appeal decision, then the Taxpayer still has the right to submit a Judicial Review to the Supreme Court. Other reasons for applying for a Judicial Review are:

  1. If the decision of the Tax Court is based on a lie or ruse of the opposing party known after the case is decided or based on evidence that is then declared false by a criminal judge;

  2. If there is important and decisive new written evidence, which is known at the trial stage in the tax court will result in a different decision;

  3. If it has been granted something that is not, demanded or more than is required, except that which is decided in the form of granting in part or in whole or adding taxes to be paid;

  4. If a part of the claim has not been decided without consideration of the reasons; or

  5. If there is a decision that is manifestly not in accordance with the provisions of the prevailing laws and regulations.

 

Judicial Review in KUP Draft Bill

 

Prior to the drafting of the KUP bill, the explanation related to the Judicial Review was explained in Law No. 14 Year 2002 concerning the Tax Court. In the KUP Draft Bill, Judicial Review is explained in Article 27 paragraph (5e), paragraph 5(f), and paragraph 5(g). In this bill, it is more affirming to the administrative sanctions from Judicial Review, where previously in Law No. 24 the Year 2002 there is no explanation related to the administrative sanctions.

 

Additional Paragraphs in KUP Draft Bill

 

 The additional paragraphs in the article explain several points including:

  1. If the Taxpayer or the Directorate General of Taxation submits a Judicial Review application, then the implementation of the tax court's decision is not suspended or terminated.

  2. If the result of the Judicial Review causes the amount of tax that still has to be paid to be increased, it will be subject to administrative sanctions in the form of a fine of 100%.

  3. The bill for the fine shall be issued no later than 5 (five) years from the date the Decision of Judicial Review is pronounced by the supreme court.

    Recommendad Article.

If previously in the Tax Court Act only explained related to the terms of the review submission, the period of submission, and the decision period of the review, whereas the KUP Draft Bill is more concerned with administrative sanctions that are if the results of the judicial review cause the number of tax increases then the penalty is imposed 100%.

 

indonesia-tax tax pajak

Recommendad Article.