Signatory Not a Permanent Employee? Peek at PT BSK’s Strategy to Cancel Billions of Rupiah in VAT Penalties!

The Issuance of a Tax Collection Letter (STP) for Administrative Penalties and Tax Invoice Formal Requirements

The issuance of a Tax Collection Letter (STP) for administrative penalties under Article 14, paragraph (4) of the KUP Law is often a nightmare for taxpayers due to the tax authority's rigid interpretation of formal requirements for Tax Invoices. This dispute centered on the Defendant's correction, which declared the Tax Invoices "incomplete" because the signatory, Halim Tanberin, was deemed not an employee of PT BSK but rather a staff member of the Accounting Group. The tax authority based its argument on Article 21 Income Tax returns, which did not list the individual as a permanent employee, thus allegedly magnifying his legal right to sign the invoices.

However, the Plaintiff Rebuttal Based on Administrative Evidence and e-Faktur Validation

However, the Plaintiff (PT BSK) launched a rebuttal based on strong administrative evidence by presenting the official Notification of Appointment of Authorized Signatory, which had been formally received by the Large Taxpayer Office (KPP PMA Lima) since 2015. The Plaintiff emphasized that, in substance, the signatory was part of the Wilmar Group management overseeing the Plaintiff, and the appointment strictly followed the procedures in PER-24/PJ/2012. Furthermore, the Plaintiff argued that all invoices had passed the DJP's e-Faktur system validation, which should automatically mitigate formal error risks.

The Board of Judges Legal Considerations on Taxpayer Compliance and SE-11/PJ/2017

The Board of Judges, in its legal considerations, sided with legal certainty and the taxpayer's administrative compliance. The Judges assessed that since the Plaintiff had submitted the notification of appointment in accordance with regulations and had never received any objection or rejection from the tax office for years, the appointment was valid. The Board also strengthened its position by referring to SE-11/PJ/2017, which states that Tax Invoices that have received approval from the e-Faktur system meet all formal requirements.

This Decision Implications and Cancellation of Penalties

This decision carries significant implications for tax practitioners, proving that e-Faktur system validation is strong evidence of "formal completeness." The tax authority's failure to prove any prior rejection of the appointment letter rendered the correction during the audit legally baseless. The resolution of this dispute ended with the cancellation of all penalties totaling IDR 1,005,518,982, reaffirming that orderly administration is the key to a taxpayer's legal protection.

A Comprehensive Analysis and the Tax Court Decision on This Dispute Are Available Here