Filing a Lawsuit at the Tax Court

Disputes at the Tax Court can be resolved through two procedures, namely appeal and lawsuit. In this tax class article, we will review the legal process for a lawsuit at the Tax Court. The legal remedy in the form of an appeal has been described in the previous article.

Pursuant to Article 1 number 7 of Law No. 14/2002 concerning the Tax Court, a lawsuit refers to a legal action that may be undertaken by a taxpayer or a tax bearer against the implementation of Tax collection or a decision against which a lawsuit may be filed pursuant to applicable statutory tax provisions.

There are four objects of a lawsuit in the tax court. First, the implementation of a distress warrant, a warrant to confiscate or announce an auction. Second, preventive decisions in the context of tax collection.

Third, decisions relating to the implementation of tax decisions, other than those stipulated under Article 25 paragraph (1) and Article 26 of Law No. 16/2009. Fourth, the issuance of notices of tax assessment or objection decision letters whose issuance does not comply with the procedures stipulated under the regulations.

Terms and Conditions

In filing a lawsuit, a taxpayer must prepare a notice of intent to sue based on the terms and conditions contained in the applicable regulations. The terms and conditions for filing a lawsuit are stipulated under Article 40 of Law No. 14/2002.

First, a lawsuit is submitted in writing in the Indonesian Language to the Tax Court. Second, the filing period for a lawsuit against the implementation of tax collection is 14 days from the date of implementation of the collection. 

Third, the filing period of a lawsuit against a decision other than the lawsuit is 30 days from the date of receipt of the decision subject to the lawsuit. However, if the plaintiff cannot fulfil the deadline due to circumstances beyond control (force majeure), the said period may be considered for an extension by the judicial panel or single judge.

An extension of the period is given for 14 days from the end of the circumstances beyond the plaintiff’s control. Fourth, Against 1 (one) implementation of collection or 1 (one) Decision, 1 (one) notice of intent to sue shall be submitted.

A lawsuit may be filed by the plaintiff, his/her heir/heiress, management or attorney attached with clear reasons. Moreover, the lawsuit also includes the date of receipt, implementation of collection or the decision subject to the lawsuit and is attached with a copy of the document against which the lawsuit is filed.

If during the lawsuit process, the plaintiff passes away, the Lawsuit may be continued by his/her heir/heiress, the attorney of his/her heir/heiress or the custodian in the event that the plaintiff is bankrupt. Further, if the plaintiff performs a merger, consolidation, split-off/spin-off or liquidation, the said petition may be continued by the party receiving accountability.

The application for a lawsuit may be revoked by submitting a statement letter of revocation to the tax court. The revocation may be revoked insofar as no examination has been conducted or an examination is being conducted.

Next, the lawsuit will be removed from the list of disputes in two manners. First, using the verdict by the chief justice if the statement letter of revocation is submitted before the trial. 

Second, the revocation may use the decision of the judicial panel or single judge through examination if the statement letter of revocation is submitted after the trial with the defendant’s approval. A revoked lawsuit may not be re-filed.

It should be noted that a lawsuit does not delay or prevent the implementation of tax collection or tax obligations of the plaintiff. However, the plaintiff may petition for the postponement of tax collection while the tax dispute examination is in progress. The postponement is given until a binding tax court decision is made.

The petition for the postponement of tax collection may be submitted simultaneously in the lawsuit. Next, the petition for the postponement will be decided before the subject matter of the dispute through an interlocutory decision. The petition for postponement is be granted n the event of very urgent circumstances causing the plaintiff’s interests to be greatly undermined if the tax collection continues. (kaw)