Why Government Regulations Cannot Restrict Your Constitutional Right to Interest Compensation

Tax Dispute: Legal Hierarchy and Interest Compensation Rights for PT NI

The interest compensation dispute between PT NI and the Directorate General of Taxes (DGT) centered on the hierarchy of laws regarding the constitutional rights of taxpayers over excess tax payments. The core conflict arose when the DGT refused to grant interest compensation for the payment of a Tax Assessment Letter (SKPKB) made prior to an objection, citing that Government Regulation No. 74 of 2011 only permits interest if the original return was a Refund (Overpayment) return. Conversely, the Taxpayer argued that Article 27A of the KUP Law is the lex superior which does not impose such discriminatory restrictions, thus any tax payment subsequently overturned by a Board of Tax Review/Tax Court decision must be compensated with 2% monthly interest.

Judicial Consideration: Lex Superior and Delegated Authority

The Tax Court Judges, in their legal consideration, firmly ruled in favor of the Taxpayer by prioritizing the principle of legal hierarchy as stipulated in Law No. 12 of 2011. The Panel held that restrictions in Government and Ministerial Regulations requiring an "Overpayment Tax Return" as a prerequisite for interest compensation exceeded the delegated authority provided by the KUP Law.

Resolution and Implications: Upholding Statutory Taxpayer Rights

This legal resolution reaffirms that payments made towards an SKPKB, which are later found not to be owed through a Tax Court Decision, are valid objects for interest compensation. The implication of this ruling is significant for legal certainty in Indonesia, serving as a reminder to tax authorities that implementing regulations (PP/PMK) cannot reduce Taxpayer rights explicitly guaranteed by Law.

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