Audit and Tax Assessment

This article reviews two crucial processes in tax administration: Tax Examination and Tax Assessment. Tax Examination is a series of activities involving the gathering and testing of evidence, conducted by the tax authority to ensure taxpayer compliance with tax laws and regulations. The purpose of this process is to verify the accuracy, completeness, and validity of the tax return (SPT - Surat Pemberitahuan, commonly translated as Tax Return or Tax Notification), or for other specific purposes.

This process may conclude with the issuance of a Notice of Tax Assessment (SKP - Surat Ketetapan Pajak) if a tax underpayment or another condition requiring correction is found. A strong understanding of the taxpayer's rights and obligations during the examination process is vital to minimize disputes and the risk of penalties.

Furthermore, Tax Assessment is the stage where the examination results are formalized through the issuance of an SKP, such as the Notice of Tax Underpayment Assessment (SKPKB - Surat Ketetapan Pajak Kurang Bayar), the Notice of Overpayment Assessment (SKPLB - Surat Ketetapan Pajak Lebih Bayar), or the Notice of Nil Tax Assessment (SKPN - Surat Ketetapan Pajak Nihil).

This article will discuss the various types of SKP, the legal basis for their issuance, and the resulting implications for taxpayers, including the obligation to settle the payment or the right to file an objection and an appeal. By understanding the mechanism of examination and assessment, taxpayers can manage compliance risk, prepare adequate documentation, and take the appropriate legal steps should a difference of opinion arise with the tax authority (fiskus - fiscal officer/taxman).