Challenging Procedural Defects: Can Tax Audit Results Be Cancelled? (Analysis Based on PMK 15/2025 and PMK 118/2024)

In the Indonesian tax ecosystem, a Tax Assessment Letter (SKP) resulting from an audit is often seen as a "final verdict" at the first level, possessing executorial power. However, the rule of law guarantees the protection of Taxpayer rights through the principle of due process. A fundamental question often asked by Taxpayers is: "Can audit results that have become an SKP be cancelled?"

The answer is Yes, but under very specific terms and conditions. This cancellation does not mean automatic tax debt forgiveness, but rather a correction of the violated legal procedure. Entering the era of Minister of Finance Regulation Number 15 of 2025 (PMK 15/2025) and PMK Number 118 of 2024, this cancellation mechanism is regulated more strictly and has follow-up consequences that must be understood so that Taxpayers do not fall into false euphoria. This article will comprehensively dissect the audit result cancellation mechanism, ranging from legal grounds and procedures to post-cancellation implications.

1. Legal Grounds for Cancellation of Audit Results

Hierarchically, the right to request cancellation of audit results stems from Article 36 paragraph (1) letter d of the Law on General Provisions and Tax Procedures (UU KUP). This article grants the Director General of Taxes the authority to cancel tax audit results or tax assessment letters from audits carried out without:

1. Delivery of the Notification of Audit Results (SPHP); or
2. Final Discussion of Audit Results (PAHP/Closing Conference) with the Taxpayer.

This provision is further reinforced in PMK Number 118 of 2024 concerning Procedures for Rectification, Objection, Reduction, Elimination, and Cancellation in Taxation, as well as Article 21 of PMK 15 of 2025 concerning Tax Audit.

2. Two Major Procedural Sins: SPHP and Final Discussion

The heart of an SKP's legality lies in transparency and participation. If the Tax Examiner ignores these two crucial stages, the resulting legal product (SKP) is considered procedurally defective.

A. Non-Delivery of SPHP

The SPHP is a mandatory document containing the list of examiner findings. Based on Article 18 paragraph (1) of PMK 15 of 2025, audit results must be notified to the Taxpayer via SPHP. If the examiner issues an SKP without ever sending an SPHP, the Taxpayer's right to know the basis of the correction has been amputated. This becomes a strong basis for filing a cancellation request [PMK 118 Year 2024, Article 21 letter d].

B. Non-Execution of Final Discussion (Closing Conference)

Even if the SPHP has been sent, the Tax Examiner remains obliged to grant the Taxpayer the right to attend the Final Discussion of Audit Results [PMK 15 Year 2025, Article 18 paragraph 5].

• If the Taxpayer has responded to the SPHP but was not invited to the discussion, or
• If the Taxpayer attended according to the invitation but the examiner refused to conduct the discussion, Then the SKP issued from that process can be cancelled [PMK 118 Year 2024, Article 44 paragraph 4].

3. Mechanism for Filing Cancellation Requests

Based on PMK 118 of 2024, the procedure for filing a cancellation is as follows:

1. Frequency: Taxpayers may submit a request at most 2 (two) times [PMK 118 Year 2024, Article 32 paragraph 2].
2. Formal Requirements:
   • Submitted in writing in Indonesian.
   • 1 (one) request for 1 (one) SKP.
   • Accompanied by clear reasons (e.g., proof of non-receipt of SPHP).
   • The SKP is not currently under objection, or the objection has been withdrawn, or no objection was filed [PMK 118 Year 2024, Article 44].
3. Decision Timeline: The DGT must issue a decision no later than 6 (six) months after the request is received. If the time limit passes, the request is deemed granted [PMK 118 Year 2024, Article 35].

4. Legal Consequences: "Cancellation is Not Exemption"

This is the most critical part often misunderstood. If the SKP is cancelled, is the Taxpayer free from tax? The answer is: NO.

Based on Article 18 of Government Regulation (PP) Number 50 of 2022 and Article 21 of PMK 15 of 2025, in the event that an SKP is cancelled because the SPHP or PAHP procedures were not carried out, the audit process is continued by executing the procedures that were previously missed.

Post-Cancellation Follow-up Flow (Article 21 PMK 15/2025):

1. SKP Cancellation: The old SKP is declared void by law.
2. Audit Continued: The Audit Team (can be the same or a new team) will continue the audit from the point of error.
   • If cancelled due to SPHP: The Examiner will deliver a new SPHP.
   • If cancelled due to PAHP: The Examiner will invite the Taxpayer for a Final Discussion.
3. Issuance of New SKP: After the missed procedures are executed, the DGT will issue a new SKP.

Thus, this cancellation essentially only "repeats the procedure," not erasing the tax findings. However, it gives the Taxpayer a second chance to argue and submit evidence in the final discussion that was previously missed.

5. Cancellation of Audit Assignment (Before SKP Issuance)

In addition to result cancellation (SKP), there is also a mechanism for Cancellation of Audit Assignment (Pembatalan Penugasan Pemeriksaan) which occurs while the audit process is still ongoing. Based on SE-15/PJ/2018, an audit assignment can be cancelled if:

1. Taxpayer Relocation: The Taxpayer moves their registered location (domicile) so the old Tax Office (KPP) is no longer authorized.
2. Administrative Error: There is a human error in the issuance of the Audit Warrant (SP2), such as a wrong name or Tax ID (NPWP).
3. Consideration of Director General of Taxes: Other reasons determined by the DGT.

If the assignment is cancelled, the Taxpayer's Tax Return status reverts to "unaudited," and the Taxpayer can still perform tax return rectifications [SE-15/PJ/2018, Attachment II.17].

6. Termination of Audit with Summary Audit Report (LHP Sumir)

In certain conditions, an audit does not result in an SKP but is terminated through a Summary Audit Result Report (LHP Sumir). This is not cancellation, but a termination of the process.

Based on Article 20 paragraph 9 of PMK 15 of 2025, LHP Sumir is created if:

1. The Taxpayer is not found within the testing period.
2. The audit is suspended due to Preliminary Evidence (Criminal), and subsequently, the investigation is stopped or the Taxpayer discloses untruths (Article 8 paragraph 3 of KUP Law).
3. Re-Audit results in no additional tax.

7. Strategy for Taxpayers

Facing potential cancellation, Taxpayers are advised to:

1. Chronological Documentation: Record every correspondence date. Keep proof of letter receipts. If the SPHP never arrives, that is your "ace card."
2. Do Not Ignore Invitations: Always attend discussion invitations. Your absence eliminates the right to sue for procedural defects [PMK 15 Year 2025, Article 18 paragraph 11].
3. Calculate Cost-Benefit: Filing for SKP cancellation under Article 36(1)(d) UU KUP will prolong the dispute time because the audit procedure will be repeated. Ensure you have strong material arguments to present in that "continued audit," not just delaying payment.

Conclusion

Audit results in the form of an SKP can be cancelled if there is a fatal procedural violation: lack of SPHP or Final Discussion. The latest regulations in PMK 15 of 2025 and PMK 118 of 2024 guarantee this right. However, such cancellation does not erase tax obligations but merely resets the process to the correct procedural stage. Taxpayers must wisely use this right as a tool to ensure material justice, not just a formality loophole.

Reference:

1. SDSN UU KUP 2023 (Law on General Provisions and Tax Procedures).
2. PP Number 50 of 2022 (Rights and Fulfillment of Tax Obligations).
3. PMK Number 15 of 2025 (Tax Examination).
4. PMK Number 118 of 2024 (Rectification, Objection, and Cancellation).
5. SE-15/PJ/2018 (Audit Policy).
6. Video Transcript "RTD - Tax Audit in Coretax Era".