Winning the Appeal: Why DJP Portal Data Alone is Insufficient for Tax Corrections? 

VAT Base Dispute: Internal Portal Data vs. Actual Fund Inflow

A correction to the Value Added Tax (VAT) Taxable Base (DPP PPN in Indonesian) based solely on internal portal data without evidence of actual delivery lacks material legal force. In the dispute involving PT TB, the Panel of Judges emphasized that the existence of Article 23 Income Tax withholding slips from third parties is not absolute proof of the delivery of Taxable Services if it is not accompanied by an inflow of funds into PT TB's bank account.

Origin of Conflict: Discrepancies in DJP System vs. Actual Turnover

This conflict was triggered by the Directorate General of Taxes (DJP)'s audit findings, which identified a discrepancy between the Output Tax reported in the VAT Return and the withholding data reported by counterparts in the DJP system. The DJP believed this discrepancy represented unreported turnover. However, PT TB presented a strong rebuttal by providing evidence that not a single rupiah of funds was received related to that data, arguing that substantively, no VAT object was incurred.

Legal Consideration: Burden of Proof and Article 78 of the Tax Court Law

In its legal consideration, the Board of Judges stated that the burden of proof regarding the occurrence of delivery lies with the party making the assertion. Since the DJP could not prove the physical flow of goods or services and relied solely on unilateral reports from third parties, the correction was deemed evidentiary weak. This ruling aligns with Article 78 of the Tax Court Law, which prioritizes the judge's conviction based on valid and relevant evidence.

Implications and Conclusion: The Strength of Banking Cash Flow

The implications of this decision are significant for the business community. It provides protection for Taxpayers against administrative errors or the misuse of Taxpayer Identification Numbers (NPWP) by third parties who incorrectly report withholding. In conclusion, the validity of a company's internal data supported by banking cash flows is far stronger than administrative tax system data that stands alone without field verification.

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