Planning to File a Lawsuit at the Tax Court? Here Are the Steps and Documents to Prepare!

The dispute settlement process for a Lawsuit (Gugatan) at the Tax Court is rigidly regulated under Law Number 14 of 2002 concerning the Tax Court (Tax Court Law). Unlike Appeal (Banding) disputes which concern substantive matters (such as the tax amount), lawsuit disputes are filed against formal procedural aspects, such as the execution of tax collection or decisions issued contrary to procedures. Both the Taxpayer (Plaintiff) and the Defendant (Directorate General of Taxes/DGT or Directorate General of Customs and Excise/DGCE) must understand the hearing stages and prepare specific documents to fulfill the formal requirements so that the filed lawsuit can be processed by the Tax Court.

I. Hearing Stages at the Tax Court

The examination process of a lawsuit dispute at the Tax Court consists of the following stages:

1. Submission of the Lawsuit Petition (Article 40 of the Tax Court Law):

   The Plaintiff submits the Lawsuit Petition within 30 days from the receipt of the disputed decision, or 14 days if the dispute concerns the execution of tax collection.

2. Request for a Statement of Response (Article 44 paragraph (1) of the Tax Court Law):

   After the lawsuit is received, the Tax Court requests a Statement of Response from the Defendant (Tax Authority/Directorate General of Taxes/Customs and Excise/Regional Authorities) within 14 days of receiving the Lawsuit Petition. The Defendant is obliged to submit it within 3 months.

3. Submission of a Statement of Rebuttal (Article 45 of the Tax Court Law):

   A copy of the Statement of Response is then sent to the Plaintiff, where the Plaintiff is granted the right to provide a counter-response in the form of a Statement of Rebuttal within 30 days of receiving the copy of the Statement of Response.

4. Courtroom Stage (Examination of the Merits of the Dispute):

   Once the administrative files are deemed complete, the Chairman of the Tax Court appoints a Panel of Judges (consisting of 3 Judges) or a Single Judge to commence the trial.

5. Opening of the Hearing & Formal Examination:

   The first hearing must commence within 3 months from the receipt of the Lawsuit Petition. Initially, the Presiding Judge opens the hearing (which is open to the public) and conducts a formal examination (checking the timeliness of the filing, the validity of the signature on the Lawsuit Petition, and the validity of the Power of Attorney).

6. Examination of the Dispute Materials:

   If the formal requirements are met, the hearing proceeds to the examination of the merits of the dispute. At this stage, the Plaintiff and the Defendant are brought together to provide oral explanations, respond to each other's arguments, and present the supporting evidentiary documents they have prepared. If the examination is not concluded, the hearing will be adjourned and resumed on the next trial date set by the Judge.

7. Evidence and Witnesses:

   The Panel of Judges may request statements from Witnesses or Experts if deemed necessary. The Plaintiff has the right to strengthen their position by submitting valid evidence in the form of documents/writings, expert testimonies, witness statements, admissions by the parties, and the judge's knowledge.

8. Final Decision:

   After the entire evidentiary process is completed and the parties have provided sufficient statements, the Panel of Judges will hold a closed deliberation to reach a decision. The decision on a lawsuit dispute must be rendered within 6 months from the date the Lawsuit Petition is received by the Tax Court. Similar to an appeal dispute, the Tax Court's decision on a lawsuit dispute is a final decision and has permanent legal force (inkracht) from the moment it is pronounced.

II. Documents to be Prepared

Aside from the hearing stages, the disputing parties also need to prepare the following documents to ensure the filed lawsuit fulfills both formal and material requirements, namely:

1. Lawsuit Petition:

   Must be written in Indonesian, addressed to the Chairman of the Tax Court, contain clear reasoning, and state the receipt date of the disputed document.

2. Copy of the Disputed Document:

   Attach a copy of the decree or proof of tax collection execution (e.g., Distress Warrant (Surat Paksa), Warrant for Confiscation (Surat Perintah Melaksanakan Penyitaan)).

3. Proof of the Plaintiff's Identity:

   Supporting documents for the applicant's legality, such as an ID Card (KTP)/Passport, and the deed of company establishment along with its latest amendments (if the plaintiff is a legal entity).

4. Special Power of Attorney & Legal Counsel Documents:

   If the trial is represented by a Legal Counsel, it is mandatory to attach a stamped Special Power of Attorney, a legal counsel license card from the Tax Court, and the legal counsel's identity card.

5. Statement of Rebuttal (Subjective):

   Prepared during the administrative process if the Plaintiff wishes to refute the Defendant's arguments.

6. Evidentiary Documents:

   All supporting documents (procedural documents, correspondence with the tax authority, or other administrative evidence) to be presented in the courtroom.