SKP Cancellation Requests: An Alternative Solution for Missed Objection Deadlines

As we all may know, disputes regarding tax assessments (Surat Ketetapan Pajak or SKP) are generally handled through the submission of an objection, as provided for in Article 25 of the General Taxation Provisions (KUP) Law. But what happens when the taxpayer fails to submit the objection on time? Fortunately, there is an alternative legal remedy: filing a request for the cancellation of the SKP.

Legal Basis for SKP Cancellation
Under Article 36, paragraph 1(b) of the KUP Law, the DGT has the authority, either on its own or at the request of the taxpayer, to reduce or cancel a tax assessment. This cancellation process becomes a viable alternative when an objection cannot be filed because it does not meet the formal requirements, such as being submitted after the deadline. The purpose of this mechanism is to ensure fairness for taxpayers, offering them a chance to resolve their tax disputes administratively despite procedural shortcomings.

Administrative Limits on SKP Cancellation Requests
A taxpayer can file a request for SKP cancellation up to a maximum of two times. This cap ensures that the taxpayer has enough opportunity to seek justice through administrative means, while also preventing indefinite delays in resolving tax disputes. However, after the second request has been exhausted, the administrative process comes to an end, and the taxpayer must consider moving to the next legal option if the issue remains unresolved.

What If the DGT Rejects the Cancellation Request?
In practice, many taxpayers turn to the Tax Court when their SKP cancellation request is rejected by the DGT. Filing a lawsuit in the Tax Court becomes the next logical step to challenge the DGT’s rejection. The Tax Court rulings on these cases vary significantly. In some instances, the court has ruled in favor of the taxpayer, overturning the DGT’s decision. In these rulings, the court typically considers the substantive merits of the case and finds that the taxpayer’s arguments hold enough weight to justify the cancellation or reduction of the SKP.

However, there are also cases where the court has upheld the DGT’s decision to reject the cancellation request. In these situations, the court typically rules that there were no procedural errors in the issuance of the rejection decision. The court confirms that the DGT followed the correct legal procedures and acted within its authority, thereby leaving no grounds for overturning the decision.

This variation in court rulings highlights the importance of presenting a strong case when filing a lawsuit in the Tax Court. Taxpayers must carefully build their arguments, focusing not only on substantive issues but also on ensuring that any procedural errors in the DGT’s decision are addressed. Without a solid legal strategy, the likelihood of success in court may be significantly reduced.

Disclaimer:
This communication contains general information only. Before making any decision or taking any action that may affect your tax and finances or your business, you should consult a qualified professional adviser. GNV shall not be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication.

 

Author : Ahdianto

 

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