The implementation of Article 12 paragraph (3) of the KUP Law requires the Respondent to prove tax corrections based on concrete and accurate data during the tax audit process. This dispute centers on the VAT Base correction for the May 2020 period of PT OI amounting to IDR 235 billion, which was solely based on customers' Article 23 Income Tax withholding data without conducting a thorough clarification regarding the timing of revenue recognition.
The primary conflict arose when the Respondent assumed that all values in the Article 23 withholding slips represented taxable deliveries for VAT purposes in the same period. Conversely, PT OI argued there were significant timing differences, where VAT Invoices had been issued in previous periods or there were reporting errors by the withholding agents (customers). PT OI presented detailed reconciliation evidence showing that the discrepancies originated from rounding, double-crediting by customers, and different tax years.
The Board of Judges provided a legal opinion stating that corrections relying only on third-party data equalization without material truth testing violate the principle of legal certainty. The Board assessed that PT OI successfully refuted the Respondent's assumptions through strong supporting evidence. This legal resolution establishes that equalization is merely an initial lead, not final proof of taxable delivery. The implication of this decision reinforces the importance for Taxpayers to maintain orderly reconciliations between Output VAT and Income Tax credits to face DJP data asymmetry.
Conclusion: The Board of Judges overturned the entire VAT Base correction as the Respondent failed to prove the existence of unreported deliveries.
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