sano Law No. 14 of 2002 on Tax Tebunal to Indonesian LAW OF THE REPUBLIC OF INDONESIA No.14/2002 CONCERNING TAX TRIBUNAL BY GRACE OF GOD THE ALMIGHTY THE PRESIDENT OF THE REPUBLIC OF INDONESIA, Considering: a. the Republic of Indonesia is a legal state on the basis of state ideology Pancasila and the Constitution of 1945, guarantees the manifestation of the just, prosperous, secure, peaceful and orderly state and national life as well as equal status of all citizens before law; b, that in order to achieve the said goal, continuous and sustainable as well as equitable national development throughout the motherland needs adequate fund, especially from taxation sources; c. that the increase in the number of taxpayers and better understanding of taxpayers about their rights and obligations in implementing taxation laws cannot avoid the occurrence of tax disputes that need fair settlement through fast, cheap and simple procedures and processes; d. that the tax Dispute Settlement Board is not yet a judicial institution subordinate to the Supreme Court; e. that in relation thereto, a tax tribunal according to the judicial system and capable of creating legal justice and certainty in the settlement of tax disputes is needed; f. that based on the considerations in letters a, b, c, d and e above, it is necessary to enact a law on tax tribunal; In view of: 1, Article 5 paragraph (1), Article 20, Article 23A, Articles 24 and 25 of the Constitution of 1945 as already amended by the Third Amendment to the Constitution of 1945; 2. Law No, 14/1970 concerning basic provisions on the judicial power (Statute Book of 1970 No.74, Supplement, to Statute Rook No.2951) as already amended by Law No.35/1999 (Statute Book of 1999 No.147, Supplement to Statute Book No.3879); 3, Law No.6/1983 on taxation general provisions and procedures (Statute Book of 1983 No.49, Supplement to Statute Book No.3262) as already amended several times and the latest by Law No.16/2000 (Statute Book of 2000 No.126, Supplement to Statute Book No,.3984); 4. Law No.7/1983 on income tax (Statute Book of 1983 No.50, Supplement to Statute Book No.3263) as already amended several times and the latest by Law No. 17/2000 (Statute Book of 2000 No.127, Supplement to Statute Book No.3985); pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 5sws2r018 Law No.4 of 2002 on Tax Trbunal 5. Law No.8/1983 on Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (Statute Book of 1983 No.51, Supplement to Statute Book No.3264) as already amended several times and the latest by Law No. 18/2000 (Statute Book of 2000 No.128, Supplement to Statute Book No.3986); 6. Law No, 12/1985 on land and building tax (Statute Book of 1985 No.68, Supplement to Statute Book No.3312) as already amended by Law No.12/1994 (Statute Book of 1994 No.62, Supplement to Statute Book No.3569); 7, Law No.14/1985 on the Supreme Court (Statute Book of 1985 No.73, Supplement to Statute Book No.3316); 8, Law No.10/1995 on Customs Affairs (Statute Book of 1995 No.75, Supplement to Statute Book No.3612), 9. Law No. 11/1985 on Excise Affairs (Statute Book of 1995 No.76, Supplement to Statute Book No.3613); 10, Law No.18/1997 on regional taxes and levies (Statute Book of 1997 No.41, Supplement to Statute Book No.3685) as already amended by Law No.34/2000 (Statute Book of 2000 No.246, Supplement to Statute Book No.4048); 11, Law No.19/1997 on the collection of tax by distress warrant (Statute Book of 1997 No.12, Supplement to Statute Book No.3686) as already amended by Law No.19/2000 (Statute Book of 2000 No.29, Supplement to Statute Book No.3987); 12. Law No.21/1997 on land and building title acquisition fees (Statute Book of 1997 No.4, Supplement to Statute Book No.3688) as already amended by Law No.20/2000 (Statute Book of 2000 No.130, Supplement to Statute Book No.3988); With the collective approval of THE HOUSE OF REPRESENTATIVES OF THE REPUBLIC OF INDONESIA AND THE PRESIDENT OF THE REPUBLIC OF INDONESIA DECIDES To Stipulate: THE LAW ON TAX TRIBUNAL CHAPTER | GENERAL PROVISION Part One Definition Article 1 Referred to in this Law as: 1, Authorized officials are the Director General of Taxation, Director General of Customs and Excise, governors, regents/mayors or officials appointed to implement taxation laws. pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 2125sws2r018 Law No.4 of 2002 on Tax Trbunal 2. Tax is all kind of tax collected by the central government, including import duty and excise, and taxes collected by regional governments on the basis of laws in force. 3. Taxation legislation is all regulations in the taxation field. 4, Decision is a written stipulation in the taxation field, which is issued by authorized officials on the basis of taxation legislation and in the framework of implementing the law on collection of tax by distress warrant, 5. Tax dispute is a dispute arising in the taxation field between taxpayers or tax bearers and authorized officials as a result of the issuance of a decision against which appeal or litigation can be submitted to tax tribunal on the basis of taxation legislation, including lawsuit against the implementation of collection based on the Law on collection of tax by distress warrant. 6. Appeal is a legal action that taxpayers or tax bearers can take against a decision, which can be submitted for the purpose of appeal, on the basis of taxation legislation in force. 7. Litigation is a legal action that taxpayers or tax bearers can take against the collection of tax or a decision, which can be submitted for the purpose of litigation on the basis of taxation legislation in force. 8, Detail of appeal is an appeal letter to tax tribunal-containing answers to appeal reason submitted by appeal applicants 9. Responding letter is a letter from a defendant to tax tribunal-containing answers to litigation submitted by a plaintift. 10, Denial letter is a letter from an appeal applicant or plaintiff to tax tribunal-containing denial to detail of appeal or responding letter. 11. Date of delivery is the date of delivery post stamp, date of facsimile, or in the case of directly conveyance, the date when the letter, decision or verdict is conveyed directly. 12. Date of receipt is the date of delivery post stamp, date of facsimile, or in the case of directly receipt, the date when the letter, decision or verdict is received directly. 13, Chairman, Vice Chairman and Judges are Chairman, Vice Chairman and Judges in tax tribunal. 14, Single Judge is the judge appointed by the Chairman to examine and decide tax disputes in a fast process. 15. Member judges are judges in a panel appointed by the Chairman to become members in the panel. 16. Presiding Judge is a member judge appointed by the chairman to preside over the hearing. 17. Secretary, Vice Secretary and Alternate Secretary are secretary, vice secretary and alternate secretary in tax tribunal. 18, Tribunal clerk, vice clerk and alternate clerk are secretary, vice secretary and alternate secretary in tax tribunal. 19, Minister is the Minister of Finance of the Republic of Indonesia. Part Two Status Article 2 pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 325sano Law No. 14 of 2002 on Tax Tebunal Tax Tribunal is a judicial institution exercising judicial power for taxpayers or tax bearers seeking justice for tax dispute. Part Three Domicile Article 3 This law establishes tax tribunal domiciled in the capital of the state. Article 4 (1) Sessions of tax tribunal are held in its domicile and if deemed necessary, they can be organized in other places. (2) The venue of the sessions as meant in paragraph (1) is stipulated by the chairman. Part Four Fostering Article 5 (1) The Supreme Court fosters tax tribunal technically. (2) Organizational, administrative and financial fostering of the tax tribunal is done by the Ministry of Finance, (3) The fostering as meant in paragraphs (1) and (2) can not reduce the freedom of judges in ‘examining and deciding tax disputes. CHAPTER II STRUCTURE OF TAX TRIBUNAL, Part One General Article 6 The structure of the tax tribunal consists of the leader, member judges, secretary and clerk. Article 7 ‘The leader of the tax tribunal consists of a chairman and 5 (five) vice chairpersons at the maximum. Part Two Chairman, Vice Chairman and Judge Article 8 (1) The President appoints judges from the list of candidates proposed the Minister after securing approval of the Chairman of the Supreme Court pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 4125snano1e Law No. 14 of 2002 on Tax Trbunal (2) The President appoints the chairman and vice chairpersons from judges proposed by the Minister after securing the approval of the Chairman of the Supreme Court. (3) The chairman, vice chairpersons and judges are state officials executing the judicial task in the field of tax dispute. (4) The chairman, vice chairpersons and judges are state officials executing the judicial task in the field of tax dispute. Article 9 (1) To become a judge, every candidate must meet the following requirements: a, being Indonesian citizen; b. being 45 (fifty five) years old at the minimum; c, devoting to God; d. being loyal to Pancasila and the Constitution of 1945; e. having never involved in activity betraying the Unitary State of the Republic of Indonesia on the basis of Pancasila and the Constitution of 1945; f. having expertise in the taxation field and holding diplomas of law scholar or other scholars; g. being respectable, honest, fair and graceful; h. being never sentenced for committing crime; i. and being healthy physically and spiritually. (2) examining and deciding a certain tax dispute case at needs special expertise, the chairman can appoint Ad Hoc judge as a member judge. (3) To become an ad hoc judge, one must meet the requirements as meant in paragraph (1), except letters b and f. (4) The prohibition as meant in Article 12 paragraph (1) letter f does not apply to an ad hoc judge. (5) Procedures for appointing the ad hoc judge in tax tribunal as meant in paragraph (1) are stipulated by a decree of the Minister. Article 10 (1) Before assuming their positions, the chairman, vice chairpersons and judges must ‘swear/promise according to their religions or beliefs, which reads as follows: "| swear/promise seriously that |, for assuming this position, do not give or promise something to whomever directly and indirectly by using whatever name and means.” "I. swear/promise that | shall do and shall not do something in this position, shall not receive a promise or gift from whomever directly and indirectly." "| swear/promise that | shall be loyal to and maintain as well as apply Pancasila as the state philosophy, foundation and ideology, the Constitution of 1945 and all laws effective for the Republic of Indonesia.” "| swear/promise that | shall continue executing my position honestly, thoroughly and do not differentiate people in executing my obligation and shall act property and fairly as the chairman/vice chairman/judge of the tax tribunal who has good and honest character in upholding law and justice.” pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 525snano1e Law No. 14 of 2002 on Tax Trbunal (2) The chairman and vice chairpersons read the oath/promise in front of the Chairman of the Supreme Court. (3) Judges read the oath/promise in front of the chairman. Article 11 (1) The Supreme Court fosters and supervises judges generally. (2) The chairman fosters and supervises the execution of tasks and behaviors of vice chairpersons, judges and secretary/clerk (3) The fostering and supervision as meant in paragraphs (1) and (2) cannot reduce the freedom of judges in examining and deciding tax disputes. Article 12 (1) A judge is not allowed to concurrently serve as: a. executor of decision of the tax tribunal; b. trustee, custodian or official connected with a tax dispute to be or being examined by the relevant; c. legal advisor; d. tax consultant; . public accountant; and/or f. businessman, (2) In addition to the positions as meant in paragraph (1), other position which cannot be assumed by a judge at the same time are further regulated in a government regulation Article 13 (1) The President honorably relieves the chairman, vice chairpersons and judges of their positions ‘on the basis of recommendations of the Minister, after securing approval from the Chairman of the Supreme Court because the relevant persons are: a. resigning on the basis of their own request; b. suffering from physical and spiritual diseases continuously; c, already reaching 65 (sixty five) years; or d. turning out to be incapable of executing their tasks. (2) The President honorably relieves the chairman, vice chairpersons and judges of their positions on the basis of recommendations of the Minister, after securing approval from the Chairman of the Supreme Court because the state needs the relevant persons for executing other state tasks. (3) The chairman, vice chairpersons and judges that passing away are automatically relieved in honorable manner of their positions by a presidential decree. Article 14 The President dishonorably relieves the chairman, vice chairpersons and judges of their positions ‘on the basis of recommendations of the Minister after securing approval from the Chairman of the Supreme Court because the relevant persons are: pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 6125sws2r018 Law No.4 of 2002 on Tax Trbunal a. sentenced for committing crime; b. committing disgraceful act; c. continuously ignoring their obligations in executing their tasks; 4d. breaking functional oath/promise; or e. violating the prohibition as meant in Article 12. Article 15 Any proposal for the honorable relief as meant in Article 13 paragraph (1) letter d and the dishonorable relief as meant in Article 14 letters b, c, d and e is submitted after the relevant persons are given sufficient opportunity to defend themselves m front of the Judge Honorable Panel Part Three The Judge Honorable Panel Article 16 (1) The establishment, composition and working arrangement of the Judge Honorable Panel as well as procedures for defense of judges are stipulated by a presidential decree on the basis of recommendations of the Chairman of the Supreme Court and the Minister. (2) The judge Honorable Panel is assigned: 1, to examine and ask information from the chairman, chairpersons or judges proposed for: a. honorable relief on the basis of the reason as meant in Article 13; b, dishonorable relief on the basis of the reason as meant in Article 14. 2. to propose provisional relief of positions of the chairman, vice chairpersons or judge because they are proposed for dishonorable relief. Part Four Provisional Relief of The Chairman, Vice Chairpersons and Judges Article 17 (1) Before the chairman, vice chairpersons and judges are relieved dishonorably, the President dismiss them provisionally on the basis of recommendations of the Minister with the approval of the Chairman of the Supreme Court (2) A judge dismissed from his/tier position is not automatically relieved of his/her status as a civil servant. Article 18 (1) If arrest warrant which is followed by detention is issued to the chairman, vice chairpersons or judges, the said chairman, vice chairpersons or judges must be first relieved provisionally of their positions. (2) if the chairman, vice chairpersons or judge are demanded before the court in a criminal case without detention, the said chairman, vice chairpersons or judges are relieved provisionally of their positions, pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttmlsano Law No. 14 of 2002 on Tax Tebunal Article 19 (1) If the chairman, vice chairpersons or judges already arrested and detained as meant in Article 18 paragraph (1) turn out to be not guilty in the investigation, the said chairman, vice chairpersons or judges are returned to their previous Positions. (2) Ifthe criminal charge against the chairman, vice chairpersons or judges as meant in Article 18 paragraph (2) is not proven on the case of the a court decision already having permanent legal power, the said chairman, vice chairpersons or judges are returned to their previous positions, Article 20 (1) The chairman, vice chairpersons or judges only can be arrested and/or detained on the basis of an order of the Attorney General after securing approval from the President, except in the following case: a. being caught red handed to commit crime; or b. disangka telah melakukan tindak pidana kejahatan yang diancam dengan pidana mati, atau tindak pidana kejahatan terhadap keamanan negara. (2) The arrest or detention as meant in paragraph (1; must have been reported to the Chairman of the Supreme Court not later than 2 x 24 (twenty four) hours. Article 21 Further provisions on procedures for provisional, honorable and dishonorable relief of the chairman, vice chairpersons or judges as well as their rights are stipulated in a government regulation, Part Five Protocol and Allowance Article 22 (1) The protocol status of the chairman, vice chairpersons and judges is stipulated by a government regulation (2) Allowance and other provisions applying to the chairman, vice chairpersons, judges, secretary, vice secretary and alternate secretary are stipulated by a decree of the Minister. Part Six Secretary, Vice Secretary and Alternate Secretary Article 23 The secretary leads secretariat assigned to provide general administrative services and is assisted by a vice secretary. Article 24 Before assuming their positions, the Chairman must take oath/promise of the secretary/vice secretary/alternate secretary according to their religions or beliefs, which reads as follows: I swear/promise: pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttmlsano Law No. 14 of 2002 on Tax Tebunal “that |, to be appointed to become the secretary/vice secretary/alternate secretary, shall be loyal and obedient fully to Pancasila, the Constitution of 1945, state and the government”; "that | shall abide by all laws in force and execute official tasks entrusted to me m a full sense of dedication, awareness and responsibility’; “that I shall continue upholding the honor of the state and government and dignity of the secretary/vice secretary/alternate secretary as well as to prioritize to the state interests, instead of personal, individual or group interests", “that I shall keep secrecy of something that according to its characteristic or an order | must keep in secrecy"; “that I shall work honestly, in orderly manner, accurately and enthusiastically for the state interests". Article 25 (1) The secretaryivice secretary/alternate secretary and employees of the tax tribunal secretariat are civil servants within the Ministry of Finance. (2) The secretary/vice secretary/alternate secretary can execute tasks of judicial clerk concurrently. Article 26 To be appointed as secretary, vice secretary and alternate secretary, a candidate must meet the following requirements: a. being Indonesian citizen; b. devoting to God; ©. being loyal to Pancasila and the Constitution of 1945; 4d. being healthy physically and spiritual e. holding diplomas of law scholar or other scholars and understanding taxation affairs. Article 27 The status of the secretary, vice secretary and alternate secretary is regulated by a decree of the Minister. Article 28 (1) Tasks, responsibility and organizational structure of the tax tribunal secretariat are stipulated by a presidential decree. (2) Working procedures of the tax tribunal secretariat are stipulated by a decree of the Minister. (3) Procedures for legal proceedings in the tax tribunal are stipulated by a decision of the chairman, Part Seven Clerk Article 29 pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml22018 Law No. 14 6 2002 on Tax Teal (1) A clerical division led by a clerk is made available in the tax tribunal. (2) In executing his/her task, the clerk of the tax tribunal is signed by a vice clerk and several alternate clerks. (3) Unless otherwise stipulated by law, the clerk, vice clerk d alternate clerks cannot hold double position as: a. Executor of decision of the tax tribunal; b. Trustee, custodian or official connected with a tax dispute to be or being examined by the relevant; c. Legal advisor; 4d. Tax consultant; ¢. Public consultant; and/or f, Businessman (4) The minister appoints and relieves the clerk, vice clerk and alternate clerks of their positions. (5) The Supreme Court fosters the clerk technically. Article 30 Before assuming their positions, the clerk, vice clerk and alternate clerks must swear/promise according to their religions or beliefs, which reads as follows: "| swear/promise seriously that |, for assuming this position, do not give or promise something to whomever directly and indirectly by using whatever name and means.” "| swear/promise that | shall do and shall! not do something in this position, shall not receive a promise or gift from whomever directly and indirectly.” "I swear/promise that | shall be loyal to and maintain as well as apply Pancasila as the state philosophy, foundation and ideology, the Constitution of 1945 and all laws effective for the Republic of Indonesia.” "I swear/promise that | shall continue executing my position honestly, thoroughly and do not differentiate people in executing my obligation and shall act properly and fairly as the clerk/vice clerk/alternate clerks of the tax tribunal who has good and honest character in upholding law and justice.” CHAPTER III AUTHORITY OF TAX TRIBUNAL Article 31 (1) The tax tribunal has the task and authority to examine and decide a tax dispute, (2) The tax tribunal, in the case of appeal, only examines and decides a decision on objection unless otherwise stipulated by laws m force. (3) The tax tribunal, in the case of litigation, examines and decides dispute over the collection of tax or decision on rectification or other decisions as meant in Article 23 paragraph (2) of Law No.6/1983 on taxation general provisions and procedures as already amended several times and the latest by Law No. 16/2000 and taxation legislation in force. pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 1025sano Law No. 14 of 2002 on Tax Tebunal Article 32 (1) In addition to the task and authority as meant in Article 31, the Tax Tribunal supervises legal proxies providing legal aid for parties in dispute in hearings of the tax tribunal (2) The supervision as meant in paragraph (1) is further regulated by a decree of the Minister. Article 33 (1) The tax tribunal constitutes the first- and last-level court in examining and deciding a tax dispute (2) For the purpose of examination of tax dispute, the tax tribunal can summon or ask data or information connected with the tax dispute from the third party in accordance with laws in force. CHAPTER IV LEGAL PROCEEDINGS Part One Legal Proxy Article 34 (1) The respective parties in dispute can be accompanied or represented by one or more legal proxies by special power of altorney. (2) To become a legal proxy, the following requirements must be fulfilled a. being an Indonesian citizen; b, having broad knowledge and expertise on taxation legislation; c, other requirements stipulated by the Minister. (3) If the legal proxy accompanying or representing an appeal applicant or plaintiff is a member of the same family by blood and marriage up to the second lineage, employee or custodian, the requirements as meant in paragraph (2) are not needed. Part Two Appeal Article 35 (1) Appeal is submitted by an appeal letter in the Indonesian language to the tax tribunal. (2) Appeal is submitted in 3 (three) months after the date of receipt of the decision submitted for appeal, unless otherwise stipulated by taxation legislation (3) The period as meant m paragraph (2) is not binding if the period cannot be fulfilled because conditions beyond control of the appeal applicant. Article 36 (1) One appeal letter is submitted against one decision. pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 1105sano Law No. 14 of 2002 on Tax Tebunal (2) Appeal is submitted by mentioning clear reasons and the date of receipt of the decision submitted for appeal (3) Copy of the decision submitted for appeal is attached to the appeal letter. (4) In addition to the requirements as meant in paragraphs (1), (2) and (3) as well as Article 35, in the case of appeal being submitted against the amount of tax due, the appeal only can be submitted if the amount of the tax due has been paid as high as 50% (fifty percent). Article 37 (1) Appeal can be submitted by a taxpayer, his/her heir, executive or legal proxy. (2) If an appeal applicant died during the appeal process, the appeal can be continued by his/her heir, legal proxy of his/her heir or his/her custodian if the appeal applicant is bankrupt. (3) If during the appeal process, an appeal applicant carries out business merger, consolidation, splitfexpansion or liquidation, the said application can be continued by the party ‘receiving responsibility because of the business merger, consolidation, splitfexpansion or liquidation. Article 38 The appeal applicant can complete his/her appeal letter to fulfill the provisions in force as long as the period as meant in Article 35 paragraph (2) does not yet elapse. Article 39 (1) A statement of revocation of appeal can be submitted to the tax appeal. (2) The revoked appeal as meant in paragraph (1) is abolished from the list of disputes by: a. stipulation of the chairman, in the case of the statement of revocation of appeal being submitted before the session; b. decision of the single panel/judge through examination, in the case of the statement of revocation of appeal is submitted in the session on the basis of approval of appeal defendant. (3) The appeal already revoked through h the stipulation or decision as meant in paragraph (2) cannot be submitted again. Part Three Litigation Article 40 (1) Litigation is submitted in writing in the Indonesian language to the tax tribunal. (2) The period of submission of litigation against the collection of tax is 14 (fourteen) days as from the date of collection. (3) The period of submission of litigation against decisions other than the litigation as meant in paragraph (2) is 30 (thirty) days as from the date of receipt of the litigated decisions. (4) The period as meant in paragraphs (2) and (3) is not binding if the said period cannot be fulfilled because of conditions beyond control of the plaintiff. pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 1225snano1e Law No. 14 of 2002 on Tax Trbunal (6) The extension of the period as meant in paragraph (4) is 14 (fourteen) days as from the date ‘of expiration of the conditions beyond control of the plaintiff. (6) One litigation is submitted to one-time collection or one decision. Article 44 (1) can be submitted by plaintiff, his/her heir; executive or legal proxy by accompanying clear reasons, mentioning the date of receipt, implementation of collection, or the litigated decision and attaching a copy of the litigated decision (2) Ifa complainant died during the litigation process, the litigation can be continued by his/her heir, legal proxy of his/her heir or his/her custodian if the complainant is bankrupt. (3) If during the litigation process, a complainant carries out business merger, consolidation, splitexpansion or liquidation, the said application can be continued by the party receiving responsibility because of the business merger, consolidation, splitfexpansion or liquidation. Article 42 (1) A statement of revocation of litigation can be submitted to the tax tribunal (2) The revoked litigation as meant in paragraph (1) is abolished from the list of disputes by: a. a stipulation of the chairman, in the case of the statement of revocation of litigation being submitted before the session; b. a decision of the single panel/judge through examination, in the case of the statement of revocation of litigation is submitted m the session on the basis of approval of appeal defendant. (3) The appeal already revoked through h the stipulation or decision as meant in paragraph (2) cannot be submitted again. Article 43 (1) Litigation does not postpone or prevent the implementation of collection of tax or taxation obligations. (2) A complainant can submit an application for postponing the follow-up to the collection of tax as meant in paragraph (1) during the examination of the tax dispute until the tax tribunal makes a decision. (3) The application as meant in paragraph (2) can be submitted confidingly in the litigation and can be decided earlier than the principal dispute. (4) The application for postponing as meant in paragraph (2) only can be approved in the most urgent condition inflicting serious loss on interests of the complainant if the litigated collection of tax is implemented. Part Four Preparation for Legal Proceedings Article 44 pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 1325sano Law No. 14 of 2002 on Tax Tebunal (1) The tax tribunal asks for details of appeal or responding letter or appeal letter or litigation letter from appeal defendant in 14 (fourteen) days as from the date of receipt of the appeal or litigation letter. (2) If the appeal applicant sends a following letter or document to the tax tribunal as meant in Article 38, the 14 (fourteen) day period as meant in paragraph (1) starts from the date of the following letter or document. Article 45 (1) The defendant gives up the detail of appeal or responding letter as meant in Article 44 in the period of: a. 3 (three) months as from the date of delivery of request for detail of appeal; b. one month as from the date of delivery of request for responding letter. (2) The tax tribunal sends a copy of the detail of appeal or responding letter as meant in paragraph (1) to the appeal applicant or plaintiff in 14 (fourteen) days as from the date of receipt. (3) The appeal applicant or plaintiff can give up a letter of denial to the tax tribunal in 30 (thirty days) as from the date of receipt of the copy of detail of appeal or responding letter as meant in paragraph (2). (4) A copy of the letter of denial as meant in paragraph (3) is sent to the defendant in 14 (fourteen) days as from the date of receipt of the denial letter. (6) If the defendant or appeal applicant or plaintiff failed to meet the provisions as meant in paragraphs (2) and (3), the tax tribunal still continues examining appeal or litigation. Article 46 The appeal applicant or plaintiff can notify the chairman to be present in the session for giving verbal information Article 47 (1) The chairman appoints a panel consisting of 3 (three) judges or single judge to examine and decide a tax dispute (2) In the case of the examination being done by the panel, the chairman appoints one of the judges as meant m paragraph (1) as the presiding judge leading the examination of the tax dispute. (3) The judges or single judge as meant in paragraph (1) hold session on the stipulated day and notify the date of the session to the parties in dispute. Article 48 (1) The judges/single judge as meant in Article 47 must have started the session in 6 (six) months as from the date of receipt of letter of appeal (2) In the case of litigation, the judges/single judge must have held the session in 3 (three) months as from the date of receipt of the litigation pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 14125siranote Low No. 14 of 2002 on Tax Tul Part Five Examination by Ordinary Proceedings Article 49 Examination by ordinary proceedings is done by a panel. Article 50 (1) For the purpose of examination, the presiding judge opens a session and declares it open for the publi (2) Before examination of the principal case starts, the panel examines the completeness and/or clarity of the appeal or litigation. (3) If the appeal or litigation is incomplete and/or unclear as meant in paragraph (2) as long as the matter has nothing to do with the requirements as meant in Article 35 paragraph (1), Article 56 paragraphs (1) and (4) and Article 40 paragraph (1) and/or paragraph (6), the completeness and/or clarity can be given in the session. Article 51 (1) A presiding judge, member judge or clerk is obliged to resign from a session if the relevant person has familial relations by blood or marriage up to the third lineal line or husband-wife relations though they divorced, with a judge or clerk in the same panel. (2) A presiding judge, member judge or clerk is obliged to resign from a session if the relevant person has family relations by blood or marriage up to the third lineal line or husband-wife relations though they divorced, with appeal applicant or plaintiff or legal proxy, (3) The presiding judge, member judge or clerk as meant in paragraphs (1) and (2) must be replaced and unless the relevant person resigns, but the dispute has been decided, the said decision is illegal and the chairman orders the dispute to be proceeded again promptly with the different composition of the panel and/or clerk. (4) In the case of the familial relations by blood, marriage or husband-wife relations as meant in paragraphs (1) and (7) being ascertained before elapsing the one-year period after the dispute is decided as meant in paragraph (3), the said dispute is s proceeded again in 3 (three) months, starting from the date when the said relations are known Article 52 (1) A presiding judge, member judge, clerk, vice clerk or altemate clerk is obliged to resign from a session if the relevant person has direct or indirect interest in a case that the said official handles, (2) The resignation as meant in paragraph (1) can be done on the basis of request from one of the parties or the parties !n dispute. (3) The chairman is authorized to stipulate the resignation as meant in paragraphs (1) and (2) in the case of the doubtful or divergent opinion. (4) The presiding judge, member judge, clerk, vice clerk or alternate clerk as meant in paragraph (1) must be replaced and unless being replaced or resigned hut the dispute has been decided, the said decision is illegal and the chairman orders the dispute to be proceeded again promptly pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 1525sano Law No. 14 of 2002 on Tax Tebunal with the composition of presiding judge, member judge, clerk, vice clerk or alternate clerk different, unless otherwise the decision already elapsed the one-year period. (5) In the case of the direct or direct interest as meant in paragraph (i) being ascertained before elapsing the one year period after the dispute is decided as meant in paragraph (4), the dispute is proceeded again in 3 (three) months as from the date when the interest is known. Article 53 (1) The presiding judge summons the defendant and can summon the appeal applicant or plaintiff to provide oral information. (2) In the case of the appeal applicant or defendant notifying his/her presence in the session as meant In Article 46, the presiding judge informs the date and day the session to the appeal applicant or defendant, Article 54 (1) The presiding judge explains the complained problem to parties in dispute (2) The panel questions the appealed or defendant regarding matters disclosed by the appeal applicant or plaintiff in the appeal letter or litigation and in the denial letter. (3) If the panel deems necessary and in the case of the appeal applicant or plaintiff being present at the session, the presiding judge can ask the appeal applicant or plaintiff to provide information needed for the settlement of the tax dispute. Article 55 (1) Based on the request from one of the parties in dispute or due to the position, the presiding judge can order witness to be present and testify at the session. (2) The witness ordered by the presiding judge as meant in paragraph (1) must be present at the session and cannot be represented. (3) In the case of the witness failing to appear, even though he/she has been summoned accordingly and the panel can make a decision without hearing testimony of the witness, the presiding judge continues the legal proceedings. (4) Unless the witness comes without accountable reason, even though the relevant has been summoned accordingly, and the panel has a sufficient reason for suspecting that the witness is intentionally absent, as well as the panel cannot make a decision without testimony of the said witness, the presiding judge can ask for assistance of police to bring the witness to the session (5) The cost needed for bringing the witness to the session, which is requested by the relevant party is borne by the said party. Article 56 (1) Witnesses are summoned to the session one by one. (2) he presiding judge questions the witnesses regarding their full name, place of birth, age or date of birth, sex, nationality, domicile, religion, job, degree of familial relations and working relations with the appeal applicant/ plaintiff or the appealed/defendant, (3) Before testifying, the witnesses are obliged to declare oath or promise according to their respective religions or beliefs, !iohom evn convidlgolvansiatons!JCA20Mirorengieh4.142002.eng.¢:Nml 125sano Law No. 14 of 2002 on Tax Tebunal Article 57 (1) Parties whose information cannot be heard as the witness as meant in Article 55 are: ‘a. members of family by blood or marriage according to straight lineage upward and downward up to the third degree of one of the parties in dispute; b. couple of the appeal applicant or plaintiff, even though they already divorced; c, sons/daughters not tuning 17 (seventeen) years; d. sufferers of lost memory. (2) If deemed necessary, the presiding judge can ask the parties as meant in paragraph (1) letters a, b and c for testifying. Article 58 The parties as meant in Article 57 paragraph (2) can deny the request of the presiding judge for testifying. Article 59 If everybody that is due to his/her job or position is obliged to keep in secrecy all things in connection with his/her job or position, the obligation to keep in secrecy is ignored for the purpose of legal proceedings. Article 60 (1) Any question submitted to witness by one of the parties is conveyed through the presiding judge. (2) If the said question, according to consideration of the presiding judge, has nothing to do with the dispute, the question is overruled Article 61 (1) Unless the appeal applicant or plaintiff or witness understands the Indonesian language, the presiding judge can appoint a linguistic expert. (2) Before executing the task of making translation that the appeal applicant or plaintiff or witness as meant in paragraph (1) understands into the Indonesian language and vise versa, the oath or promise of the linguistic expert is taken in accordance with his/her religion or belief. (3) People serving as a witness in the dispute cannot be appointed as a translator in the said dispute. Article 62 (1) In the case of the appeal applicant or plaintiff or witness turning out to be dumb and/or deaf as well as unable to write, the presiding judge appoints a person clever to associate with the appeal applicant or plaintiff or witness as a translator. (2) Before executing the task, the oath or promise of the translator is taken in accordance with his/her religion or belief. (3) In the case of the appeal applicant or plaintiff or witness turning out to be dumb and/or deaf but able to write, the presiding judge can ask a clerk to write questions and warnings to the appeal applicant or plaintiff or witness and orders the relevant to convey the writings to the said pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 1725sano Law No. 14 of 2002 on Tax Tebunal appeal applicant or plaintiff or witness for writing answers, and later all questions and answers must be read Article 63 (1) The oath or promise of a witness is taken and his/her testimony is heard at the session attended by the appealed or defendant. (2) If the appealed or defendant has been summoned accordingly but the relevant failed to appear without accountable reasons, the oath or promise of the witness is taken and his/her testimony is heard without the presence of the appealed or defendant, (3) If the witness to be testified failed to appear at the session because of the absence permissible legally, the panel can come to the domicile of the witness to take oath or promise or to hear testimony of the said witness without the presence of the appealed or defendant, Article 64 (1) Unless a dispute is settled one trial day, the examination is continued on the following trial day, which is stipulated. (2) The following trial day is notified to the appealed or defendant and can be informed to the appeal applicant or plaintiff. (3) If the appealed or defendant is absent from the legal proceedings without accountable reason, ‘even though the relevant has be notified accordingly, the session can be continued without the presence of the appealed or defendant. Part Six Examination by Fast Proceedings Article 65 Examination by fast proceedings is done by the panel or single judge. Article 66 (1) Examination by fast proceedings is applied to: a. certain tax dispute; b. litigation not decided in the period as meant in Article 81 paragraph (2); ¢. failure to fulfil any of the provisions as meant in Article 84 paragraph (1) or misprint and/or miscalculation in a verdict of the tax tribunal; d. disputes being not authority of the tax tribunal on the basis of legal considerations. (2) The certain tax disputes as meant in paragraph (1) letter a are tax disputes whose appeal or litigation fails to meet the provisions as meant in Article 35 paragraphs (1) and (2), Article 36 paragraphs (1) and (4), Article 37 paragraph (1), Article 40 paragraph (1) and/or paragraph (6). Article 67 Examination of the tax disputes as meant in Article 66 paragraph (1) by fast proceedings is done without detail of appeal or responding letter or denial letter. Article 68 pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 1825sano Law No. 14 of 2002 on Tax Tebunal Alll provisions on examination by ordinary proceedings also apply to examination by fast proceedings. Part Seven Verification Article 69 (1) Evidence can be in the form of: a. letter or writing; b. testimony of expert; c, testimony of witness; d. recognition of parties; and/or e. knowledge of judge. (2) Conditions already ascertained by the public need not be proven, Article 70 The letter or writing as evidence consists of: a. authentic deed, namely a letter made out by or in front of a public official who, according to legislation, is authorized to make out the letter to be used as a proof of event or legal event mentioned inside; b. under-hand deed, namely a letter made out and signed by the relevant parties to be used as a proof of event or legal event mentioned inside; c. decision or stipulation issued by the authorized official; d. other letters or writings excluding from letters a, b and ¢ which are in relation to appeal or litigation. Article 71 (1) Testimony of expert is an opinion disclosed under oath at the session with regard to matters that he/she knows according to his/her experience and knowledge. (2) Someone not permitted to testify as the witness as meant in Article 57 paragraph (1) cannot give testimony of expert. Article 72 (1) Based on the request of the both parties or one of the parties or due to his/her position, the presiding judge or single judge can appoint one or several experts. (2) At the session, an expert must give information both in writing and verbally, which is fortified by oath or promise, with regard to the truly manner according to his/ her experience and knowledge. Article 73 Testimony of a witness is considered a proof if the information deals with matters that the witness ‘experiences, sees and hears personally. pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 1925sano Law No. 14 of 2002 on Tax Tebunal Article 74 Recognition of the parties cannot be withdrawn, unless otherwise on the basis of solid reason and the panel or single judge can accept. Article 75 Knowledge of the judge is matters having their truth ascertained and believed. Article 76 The judge determines what must be proven, load of verification along with evaluation of verification and at least 2 (two) proofs as meant in Article 69 paragraph (1) are needed for legitimizing the verification. Part Eight Verdict Article 77 (1) A verdict of the tax tribunal is the final decision and has permanent legal power. (2) The tax tribunal can issue a provisional verdict on litigation concerning the application as meant in Article 43 paragraph (2). (3) Parties in dispute can submit an application for review of a verdict of the tax tribunal to the Supreme Court. Article 78 A decision of the tax tribunal is made on the basis of results of evaluation of verification and the relevant taxation legislation as well as belief of the judge. Article 79 (1) If the examination is done by the panel, the verdict of the tax tribunal as meant in Article 78 is made on the basis of deliberation led by the presiding judge and in the case of the deliberation failing to result in an agreement, the verdict is made by voting. (2) Unless an agreement is obtained in deliberation to make a verdict thus it must be decided by voting, opinions of member judges disagreeing with the said decision is mentioned in the verdict of the tax tribunal Article 80 (1) The verdict of the tax tribunal can be in the form of: a. rejecting; b. approving partly or wholly; c. adding the amount of tax, which must be paid; d. being unacceptable; ©. rectifying misprint and/or miscalculation; and/or f. nullifying. pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 20125sws2r018 Law No.4 of 2002 on Tax Trbunal (2) Litigation, appeal or appeal to the Supreme Court cannot be filed against the verdict as meant in paragraph (1) Article 84 (1) A verdict on appeal examined by ordinary proceedings is made in a period of 12 (twelve) months as from the date of receipt of the appeal letter. (2) A verdict on litigation examined by ordinary proceedings is made in a period of 6 (six) months as from the date of receipt of the litigation letter. (3) In specific cases, the period as meant in paragraph (1) is extended to another term of 3 (three) months at the maximum. (4) In specific cases, the period as meant in paragraph (2) is extended to another term of 3 (three) months at the maximum. (5) Unless the submitted litigation other than that against the decision on collection of tax is, decided in the period as meant in paragraph (2), the tax tribunal is obliged to make a verdict, through examination by fast proceedings for one month after the six-month period elapses. Article 82 (1) A verdict on the certain tax disputes as meat in Article 66 paragraph (1) which are processed by fast proceedings, declared unacceptable, is made in the following period: a. 30 (thirty) days from the deadline of submission of appeal or litigation elapses; b. 30 (thinly) days as from the date of receipt of appeal or litigation if the appeal or litigation is submitted after the deadline of the submission elapses. (2) A verdict/stipulation on the mistake as meant in Article 66 paragraph (1) letter fin the form of rectification of misprint and/or miscalculation, which is examined by fast proceedings is made in 30 (thirty) days as from the date when the mistake is ascertained or the application of a party is accepted. (3) A verdict on disputes that, according to legal consideration, is not authority of the tax tribunal as meant in Article 66 paragraph (1) letter d in the form of being unacceptable, which is, processed by fast proceedings is made in 30 (thirty) days as from the date of receipt of the appeal or litigation letter. (4) If a verdict of the tax tribunal on the tax dispute as meant in paragraph (3) is made, the appeal applicant or plaintiff can submit litigation to the authorized court. Article 83 (1) A verdict of the tax tribunal must be read at a session open for the public. (2) In the case of the failure to comply with the provision as meant in paragraph (1), a verdict of the tax tribunal is illegitimate and has no permanent legal power and in relation thereto, the decision must be read again at a session open for the public. Article 84 (1) A verdict of the tax tribunal must contain: a, the letter head of the verdict reading "FOR JUSTICE ON THE BASIS OF GOD THE ALMIGHTY"; pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 21125sws2r018 Law No.4 of 2002 on Tax Trbunal b. name, domicile or residence, and/or other identities of the appeal applicant or plaintiff; c. name, position and address of the appealed or defendant; d. day, date of receipt of the appeal or litigation; ¢. of appeal or litigation, and summary of detail of appeal or responding letter or denial letter, which is clear; f. consideration and evaluation of every proof submitted and matters arising from the session during the examination of the dispute; 9. principal dispute; h, legal reason becoming the basis of the verdict; i. contents of the verdict on the dispute; and j. day, date of decision, name of judge deciding, name of clerk and information on the presence or absence of the parties. (2) The failure to comply any of the provisions as meant in paragraph (1) makes the said verdict illegitimate and the chairman orders the dispute to be processed again by fast proceedings, unless otherwise the decision already elapsed one year. (3) The summary as meant in paragraph (1) letter is not needed if the tax tribunal makes a verdict on the tax dispute as meant in Article 66 paragraph (1) letters c and d and Article 66 paragraph (2). (4) A verdict of the tax tribunal must be signed by the judges deciding the case and clerk. (5) If the presiding judge or single judge in charge of the session is absent from signing, the verdict is signed by the chairman by disclosing reasons for the absence of the presiding judge or single judge. (6) If the member judge is absent from signing, the verdict is signed by the presiding judge by accompanying reasons for absence of the said member judge. Article 85 (1) In the examination, clerk must make out an official report on the session, which contains everything arising from the hearing. (2) The official report is signed by the presiding judge or single judge and the clerk and in the case of any of them being absent, reason for the absence is mentioned in the official report. (3) If the presiding judge or single judge and clerk is absent from signing, the official report is signed by the chairman and one of the clerks by mentioning reason for absence of the presiding judge or single judge and clerk. Part Nine Execution of Verdict Article 86 A verdict of the tax tribunal can be executed directly without requiring a decision of the authorized official unless otherwise stipulated by legislation. Article 87 pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttmlsano Law No. 14 of 2002 on Tax Tebunal Ifa verdict of the tax tribunal approves the appeal partly or wholly, the overpaid tax is returned plus an interest compensation of 2% (two percent) per month over 24 (twenty four) months at the maximum, in accordance with the taxation legislation in force. Article 88 (1) Secretary sends a copy of the verdict or stipulation of the tax tribunal is sent to parties by a letter not later than 30 (thirty) days as from the date of issuance of the verdict or 7 (seven) days as from the date of issuance of the provisional decision. (2) The verdict of the tax tribunal must be executed by the authorized official not later than 30 (thirty) days as from the date of receipt of the verdict. (3) The official not executing the verdict of the tax tribunal in the period as meant in paragraph (1) is subjected to a sanction in accordance with the personnel provisions in force, Part Ten Examination of Review Article 89 (1) Application for the review as meant in Article 77 paragraph (3) only can be submitted once to the Supreme Court through the tax tribunal (2) The application for the review does not postpone or discontinue the execution of a verdict of the tax tribunal (3) The application for the review can be revoked before a verdict is made, and in the case of revocation, the application cannot be submitted again. Article 90 Legal proceedings applying to examination of review are the legal proceedings for examination of review as meant in Law No.14/1985 on the Supreme Court, unless otherwise stipulated specifically in this law. Article 91 ‘An application for review only can be submitted on the basis of the following reasons: a. if'a verdict of the tax tribunal is based on falsehood or deceit of the opponent which is ascertained after the case is decided or based on evidence later declared false by a criminal judge; b. if new written proofs which are important and decisive are available, which will result in a different verdict should they are ascertained at the hearing stage; ¢. if one or more matters not demanded has/have been approved, unless otherwise decided on the basis of Article 80 paragraph (1) letters b and c; d. if a part of the demand is not yet decided without considering its causes; «. if'a verdict decidedly contravenes the provisions of laws in force. Article 92 (1) The application for the review on the basis of the reasons as meant in Article 91 letter ais, submitted not later than 3 (three) months as from the date when the falsehood or deceit is pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 23125sano Law No. 14 of 2002 on Tax Tebunal ascertained or a verdict of the criminal judge obtains permanent legal power. (2) The application for the review on the basis of the reasons as meant in Article 91 letter b is submitted not later than 3 (three) months as from the date of finding of the evidence letter whose day and date must be declared under oath and legalized by the authorized oficial. (3) The application for the review on the basis of the reasons as meant in Article 91 letters c, d and ¢ is submitted not later than 3 (three) months as from the date of delivery of the verdict. Article 93 (1) The Supreme Court examines and decides an application for review with the provision that: a. in 6 (six) months as from the date of receipt of the application for review by the Supreme Court, it must have decided, in the case of the tax tribunal making the verdict through ordinary proceedings; b. in one month as from the date of receipt of the application for review by the Supreme Court, it must have decided, in the case of the tax tribunal making the verdict through fast, proceedings. (2) A verdict on the application for the review as meant in paragraph (1) must be read at a session open for the public. CHAPTER V TRANSITIONAL PROVISION Article 94 With the enforcement of this law: 1. The Tax Dispute Settlement Board already established on the basis of Law No.17/1997 becomes the tax tribunal on the basis of this law. 2. The tax tribunal on the basis of this law is the continuation of the Tax Dispute Settlement Board as meant in point 1. 3, Based on the provision as meant in point 2, the chairman, vice chairpersons and members of the Tax Dispute Settlement Board become the chairman, vice chairpersons and judges of the tax tribunal. 4, Secretary of the session in the Tax Dispute Settlement Board becomes clerk in the tax tribunal 5, The chairman, vice chairpersons and members of the Tax Dispute Settlement Board can complete their tasks up to the end of their tenure. 6. Not later than 2 (two) years after the enforcement of this law, its organizational structure, task and authority is adjusted by this law. Article 95 (1) Appeal or litigation submitted to the Tax Dispute Settlement Board and not yet decided, in the case of: a. deadline of submission of appealliitigation already expiring before the enforcement of this law, is examined and decided by the tax tribunal on the basis of Law No.17/1997; pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 24125snano1e Law No. 14 of 2002 on Tax Trbunal b. deadline of submission of appealllitigation not yet expiring upon the enforcement of this law, is examined and decided on the basis of this law. (2) Review can be submitted to the tax dispute case examined as meant in paragraph (1) letter a on the basis of this law. CHAPTER VI CONCLUSION Article 96 With the enforcement of this law, Law No.17/1997 on the Tax Dispute Settlement Board (Statute Book of 1997 No.40, Supplement to Statute Book No.2684) is declared null and void. Article 97 This law is named Tax Tribunal Law. Article 98 This law comes into force as from the date of stipulation For public cognizance, this law shall be promulgated by placing it in Statute Book of the Republic of Indonesia. Ratified in Jakarta On April 12,2002 THE PRESIDENT OF THE REPUBLIC OF INDONESIA sgd MEGAWAT! SOEKARNOPUTRI Promulgated in Jakarta On April 12,2002 THE STATE SECRETARY OF THE REPUBLIC INDONESIA sgd BAMBANG KESOWO pin evn comfiigsotranslatonslJICAM%20Mirorfenglsh’14.14.2002.0ng.gcttml 25125