Appeal Against Income Tax Article 4 Paragraph (2) Rejected Due to Failure to Attend Trial Three Times

Appeal Against Income Tax Article 4 Paragraph (2) Rejected Due to Failure to Attend Trial Three Times

PUT-007243.25/2023/PP/M.VB August 13, 2025

PT ABC faced a crucial moment at the Tax Court in its effort to cancel the correction of Final Income Tax Article 4 paragraph (2). However, in this appeal story full of legal drama, the Panel of Judges ultimately decided to reject their petition, a ruling rooted in one fundamental thing: failure of proof and absence at the hearings.

This legal battle began with an Underpaid Tax Assessment Letter (SKPKB) for Final Income Tax Article 4 paragraph (2) for the December 2020 Tax Period. After the objection process, the dispute shrank but still left a significant amount.

The center of the conflict was the Taxable Income for Income Tax Article 4 paragraph (2) amounting to IDR 30,011,774,234.00. In the eyes of the Director General of Taxes (the Respondent), this figure reflected income from the transfer of assets that had not been subject to Final Income Tax, and therefore, had not been withheld and reported.

PT ABC insisted that this correction was mistaken. They claimed that all the disputed asset transfer transactions had been subject to Final Income Tax Article 4 paragraph (2) withholding in 2020. They also attacked the DJP's procedure, accusing the correction of being based solely on Equalization calculations that violated examination standards and legal foundations.

As the case moved to the Tax Court, the DJP mounted a strong defense. They responded to PT ABC's procedural attacks by arguing that their legal basis was already correct, namely PER-23/PJ/2013.

However, the DJP's main weapon was the issue of compliance: PT ABC never fully fulfilled the request to borrow books, records, and documents during both the examination and objection processes. This activated Article 26A paragraph (4) of the General Provisions and Tax Procedures Law (UU KUP), which allows evidence newly submitted during the appeal not to be considered.

The decisive moment occurred in the courtroom. The Tax Court gave PT ABC the opportunity to verify and refute the DJP's arguments with indisputable supporting evidence.

However, during the evidence testing process, an unexpected drama unfolded: PT ABC did not attend three consecutive court hearings without clear reason.

For the Panel of Judges, these empty seats were the turning point.

"The arguments and evidence submitted by PT ABC cannot be verified for their validity by the Tax Court, and therefore their truth cannot be believed..."

Furthermore, PT ABC failed to respond to the DJP's juridical arguments regarding Article 26A paragraph (4) of the General Provisions and Tax Procedures Law. With the truth of PT ABC's arguments unable to be believed, the Panel of Judges used its conviction and assessment of proof.

Based on the failure of proof and the continuous absence, the Tax Court concluded to uphold the DJP's correction of the Taxable Income for Income Tax Article 4 paragraph (2).

In the end, the Tax Court decided to REJECT PT ABC's APPEAL. This ruling finally solidified PT ABC's Taxable Income for Income Tax Article 4 paragraph (2) at IDR 33,538,369,385.00, closing the story of the tax dispute that originated from a correction on the transfer of assets.