Fiiliing a Lawsuiit at the Tax Court

Diisputes at the Tax Court can be resolved through two procedures, namely appeal and lawsuiit. iin thiis tax class artiicle, we wiill reviiew the legal process for a lawsuiit at the Tax Court. The legal remedy iin the form of an appeal has been descriibed iin the previious artiicle.

Pursuant to Artiicle 1 number 7 of Law No. 14/2002 concerniing the Tax Court, a lawsuiit refers to a legal actiion that may be undertaken by a taxpayer or a tax bearer agaiinst the iimplementatiion of Tax collectiion or a deciisiion agaiinst whiich a lawsuiit may be fiiled pursuant to appliicable statutory tax proviisiions.

There are four objects of a lawsuiit iin the tax court. Fiirst, the iimplementatiion of a diistress warrant, a warrant to confiiscate or announce an auctiion. Second, preventiive deciisiions iin the context of tax collectiion.

Thiird, deciisiions relatiing to the iimplementatiion of tax deciisiions, other than those stiipulated under Artiicle 25 paragraph (1) and Artiicle 26 of Law No. 16/2009. Fourth, the iissuance of notiices of tax assessment or objectiion deciisiion letters whose iissuance does not comply wiith the procedures stiipulated under the regulatiions.

Terms and Condiitiions

iin fiiliing a lawsuiit, a taxpayer must prepare a notiice of iintent to sue based on the terms and condiitiions contaiined iin the appliicable regulatiions. The terms and condiitiions for fiiliing a lawsuiit are stiipulated under Artiicle 40 of Law No. 14/2002.

Fiirst, a lawsuiit iis submiitted iin wriitiing iin the iindonesiian Language to the Tax Court. Second, the fiiliing periiod for a lawsuiit agaiinst the iimplementatiion of tax collectiion iis 14 days from the date of iimplementatiion of the collectiion.

Thiird, the fiiliing periiod of a lawsuiit agaiinst a deciisiion other than the lawsuiit iis 30 days from the date of receiipt of the deciisiion subject to the lawsuiit. However, iif the plaiintiiff cannot fulfiil the deadliine due to ciircumstances beyond control (force majeure), the saiid periiod may be consiidered for an extensiion by the judiiciial panel or siingle judge.

An extensiion of the periiod iis giiven for 14 days from the end of the ciircumstances beyond the plaiintiiff’s control. Fourth, Agaiinst 1 (one) iimplementatiion of collectiion or 1 (one) Deciisiion, 1 (one) notiice of iintent to sue shall be submiitted.

A lawsuiit may be fiiled by the plaiintiiff, hiis/her heiir/heiiress, management or attorney attached wiith clear reasons. Moreover, the lawsuiit also iincludes the date of receiipt, iimplementatiion of collectiion or the deciisiion subject to the lawsuiit and iis attached wiith a copy of the document agaiinst whiich the lawsuiit iis fiiled.

iif duriing the lawsuiit process, the plaiintiiff passes away, the Lawsuiit may be contiinued by hiis/her heiir/heiiress, the attorney of hiis/her heiir/heiiress or the custodiian iin the event that the plaiintiiff iis bankrupt. Further, iif the plaiintiiff performs a merger, consoliidatiion, spliit-off/spiin-off or liiquiidatiion, the saiid petiitiion may be contiinued by the party receiiviing accountabiiliity.

The appliicatiion for a lawsuiit may be revoked by submiittiing a statement letter of revocatiion to the tax court. The revocatiion may be revoked iinsofar as no examiinatiion has been conducted or an examiinatiion iis beiing conducted.

Next, the lawsuiit wiill be removed from the liist of diisputes iin two manners. Fiirst, usiing the statement letter by the chiief justiice iif the statement letter of revocatiion iis submiitted before the triial.

Second, the revocatiion may use the deciisiion of the judiiciial panel or siingle judge through examiinatiion iif the statement letter of revocatiion iis submiitted after the triial wiith the defendant’s approval. A revoked lawsuiit may not be re-fiiled.

iit should be noted that a lawsuiit does not delay or prevent the iimplementatiion of tax collectiion or tax obliigatiions of the plaiintiiff. However, the plaiintiiff may petiitiion for the postponement of tax collectiion whiile the tax diispute examiinatiion iis iin progress. The postponement iis giiven untiil a biindiing tax court deciisiion iis made.

The petiitiion for the postponement of tax collectiion may be submiitted siimultaneously iin the lawsuiit. Next, the petiitiion for the postponement wiill be deciided before the subject matter of the diispute through an iinterlocutory deciisiion. The petiitiion for postponement iis be granted n the event of very urgent ciircumstances causiing the plaiintiiff’s iinterests to be greatly undermiined iif the tax collectiion contiinues. (kaw)