Taxpayer's Lawsuit Granted: DJP Loses for Failing to Prove Formal Defect in Returning the Request for Annulment of Tax Assessment Letter

Tax Court Decision on the Legality of Returning SKP Annulment Requests of PT AKJ

Indonesian tax provisions guarantee the right of taxpayers to submit a request for the annulment of an incorrect Tax Assessment Letter (SKP), as stipulated under Article 36 paragraph (1) letter b of the Law on General Provisions and Tax Procedures (UU KUP). In a recent case study, Tax Court Decision Number PUT-010315.99/2024/PP/M.XIVA Tahun 2025, the crucial issue regarding the legality of Non-SKP Administrative Decisions takes center stage. This case involved PT AKJ, the Plaintiff, who filed a lawsuit against the Head of the DJP Regional Office of East Java III for issuing Letter Number S-2240/PJ/WPJ.12/2024, which effectively returned the Taxpayer's request without processing it substantively. The core legal conflict in this dispute revolves around the question of whether the Taxpayer had met the adequate formal requirements, thereby obligating the DJP to process the request until a final Decree is issued, or whether the DJP's action of returning the request was a legitimate procedure due to perceived incompleteness.

Procedural Arguments Between the Plaintiff and DJP

The Plaintiff's argument is rooted in formal compliance. PT AKJ contended that it had attached all the necessary documents as required by the implementing regulations related to the SKP annulment request, thus arguing that the DJP's letter returning the request violated the principle of legal certainty. The Taxpayer felt prejudiced because their right to obtain a substantive decision on the alleged incorrect SKP was unilaterally suspended through an unfounded administrative decision. On the other hand, the DJP defended its action, relying on the administrative authority to review the completeness of the file. According to the tax authority, the return action (Letter S-2240) was carried out due to a formal defect or incompleteness that prevented the request from being processed according to strict internal procedures. Thus, the DJP viewed the return letter as a valid procedural step, not a substantive refusal.

Tax Court Panel Considerations and Burden of Proof

In arbitrating this conflict, the Tax Court Panel took a firm stance focusing on the burden of proof. The Panel ruled that as the party issuing an administrative decision detrimental to the Taxpayer, the DJP was obliged to conclusively prove the legal basis and formal grounds for returning the request in the court proceeding. Since the DJP failed to present sufficient evidence regarding the formal defect of PT AKJ's request, the Panel concluded that the DJP Regional Office Head's Letter Number S-2240 was issued without a strong basis and violated the principle of sound administrative practice.

Legal Implications and Protection of Taxpayers' Rights

This decision, which grants the entire lawsuit of PT AKJ, carries significant implications for tax litigation practice. Firstly, the ruling strengthens the protection of Taxpayers against procedural administrative decisions that impede their rights. Secondly, it serves as a warning to the tax authorities that any administrative action leading to the return of a request must be based on very clear, measurable, and demonstrable reasons. The direct consequence of this ruling is the cancellation of Letter S-2240, which obliges the DJP to proceed with the examination and decision-making process for the request for annulment of the incorrect SKP filed by the Taxpayer. Moving forward, Taxpayers should leverage this precedent to challenge seemingly unfounded request return letters by filing a lawsuit with the Tax Court.

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