Organizational Performance 97
Overview
2022 AnnualReport
DGT use the completion aspect of the Digital Forensics Task Implementation Report (LPTFD) for digital forensics performance measurement. In 2022, UPFD in DGT issued a total of 811 Digital Forensics Task Force Letters (STFD), either in the context of conducting tax audits, preliminary investigations, investigations, or other activities that require support for digital forensics. By the end of 2022, UPFD had completed 813 LPTFDs. This number increased by 16.98 percent from the completion in 2021 of 695 LPTFD.
In addition to the completion of LPTFD, the performance of digital forensics is also measured by the utilization of electronic data resulting from digital forensics activities. Electronic data utilization is the submission of the results of electronic data processing and analysis to parties who request support from digital forensic activities, both internal and external parties. Electronic data processing involves activities to extract and recover electronic data resulting from the imaging process in the form of structured original files with the aim of facilitating further processes.
Meanwhile, electronic data analysis is an activity that interprets electronic data that has been recovered in an
informative form. The realization of the performance of the utilization of electronic data resulting from digital forensic activities in 2022 reached 98.1 percent of the target of 70 percent.
Description Head Office
Level RTO Level Total
Issuance of Digital Forensics Assignment Letters (STFD) for:
- Audit
- Preliminary Investigation - Investigation
- Request for Assistance from DJBC - Others
9 51 11 26 16
341 345 12 - -
343 378 26 26 38
STFD Cancellation 3 19 22
LPTFD Completion 118 695 813
Source: Directorate of Law Enforcement
98 Organizational Performance
Overview 20
Annual 22
Report
d. reduction or cancellation of incorrect Notice of Tax Assessment;
e. reduction or cancellation of incorrect Notice of Tax Collection;
f. reduction of Land and Building Tax administrative fine;
g. reduction of the principal of Land and Building Tax payable; and
h. The cancellation of tax audit results or Notice of Tax Assessment from audit results which conducted without the Notification Letter of Audit Result (SPHP) or final discussion of the audit result with the taxpayer.
Throughout 2022, DGT received 17,408 objection submissions and 219,862 non-objection requests. As for the number of settlements for the submission of objections and non-objection requests in 2022 numbered 18,457 objection decrees and 182,021 non-objection decrees.
In order to improve the quality of handling of objection and non-objection settlements in 2022, DGT conducted several efforts, including:
a. monitoring and evaluating the settlement of objections and non-objections carried out by the RTO;
b. conducting peer review related to objection and non-objection process; and
c. preparing objection verification guidelines (case guidance) to create uniformity in the objection verification process and accelerate objection settlement time.
Request and Settlement of Objection, 2022
16,000 16,500 17,500 18,500
17,000 18,000 19,000
Request Settlement
17,408
18,457
Request and Settlement of Non-objection, 2022
160,000 170,000 190,000 210,000
180,000 200,000 220,000
Request Settlement
219,862
182,021
Notes:
• Included in the request/settlement of Non-objection in the graph above is the request/settlement based on the provisions of Article 36 paragraph (1) letters a, b, c, and d of Law on General Provisions and Tax Procedures.
• Total settlement in one year is the number of decrees issued by DGT on the submission of objections/non-objection request from the taxpayers in the relevant year and previous year.
Source: Information and Supervision on SIDJP accessed January 13, 2023, Directorate of Tax Objection and Appeal
2. Appeal and Lawsuit
Appeals and lawsuits can only be filed by taxpayers to the tax court. The appeal request is submitted on the Decision on Objection. Meanwhile, a lawsuit application can be submitted by the taxpayer or tax bearer against:
a. the implementation of a Coerced Warrant, Notice of Seizure, or Announcement of Auction;
b. prevention decree in the context of tax collection;
Organizational Performance 99
Overview
2022 AnnualReport
Notes:
The number of Verdict according to Tax Court Decision accepted by Directorate of Tax Objection and Appeal and inputted into the system until December 30, 2022.
Source: Directorate of Tax Objection and Appeal
d. Issuance of Notice of Tax Assessment or Decision on Objection that is not in accordance with the procedures that have been regulated in the provisions of tax laws and regulations.
Throughout 2022, DGT has handled 11,630 requests for appeals and lawsuit disputes submitted by taxpayers to the Tax Court, consisting of 9,362 appeals and 2,268 lawsuit requests. The number of decisions on appeal disputes and lawsuits received by DGT from the Tax Court during 2022 was 13,292 decisions.
Based on the table above, the verdict in the form of Rejected, Eliminated from Disputes Lists, Unaccepted, and Added shows DGT’s victory in appeal or lawsuit disputes numbered 4,336 out of 10,325 Verdicts. Partially Granted Verdict indicated that there were some materials of the appeal or lawsuit that were rejected by the Tax Court Judges (DGT won partially). Thus, the DGT’s win rate on appeals and lawsuits in the Tax Court in 2022 reached 44.8 percent.
Several strategies for handling disputes and appeals were carried out by DGT in 2022, including:
a. develop standardization of legal argumentation in handling tax disputes;
b. conducting a structured, organized, and measurable hearing to strengthen the argumentation on a disputed object through input from the participants of the hearing, as well as to hone the analytical skills of the Tax Objection Reviewer in viewing a case;
c. coordinating with relevant units regarding the confirmation of juridical disputes and evidentiary disputes;
d. to increase the capacity of the Tax Objection Reviewers through training, technical guidance, focus group discussions and sharing sessions;
e. providing feedback to units regarding the results of appeal and lawsuit hearings at the Tax Court; and
f. compiling a database of Tax Court decisions in the KMS_Tax Dispute application to facilitate searches based on
Verdict Appeal Lawsuit Total
Cancelled - 62 62
Added 2 - 2
Partially Granted 2,614 109 2,723
Fully Granted 5,089 508 5,597
Eliminated from Disputes Lists 156 302 458
Rejected 2,251 869 3,120
Unaccepted 213 543 756
Corrected due to Errors in Writing and/or Calculation 549 25 574
Total 10,874 2,418 13,292
Distribution of Decision of Appeal and Lawsuit Based on Verdicts Received by DGT, 2022
100 Organizational Performance
Overview 20
Annual 22
Report
3. Case Review
Case review is an extraordinary legal attempt that can be submitted by the DGT or taxpayer to the Supreme Court through the Tax Court on appeal decisions and lawsuit decisions. A case review may be filed by the parties by submitting a Memory for Case Review within a period of no later than three months after the decision is sent by the Tax Court. The party requested for the Case Review is required to answer in the form of a Counter Memory for Case Review. The respondent of the Case Review is obliged to submit an answer or response in the form of a Counter-Memorial for Case Review within 30 days from the notification of the request for case review and after the Reconsideration Memorandum is sent to the opposing party.
In 2022, DGT submitted 2,697 requests for Case Review to the Supreme Court. The number of case review decision from the Supreme Court received by the DGT in 2022 numbered 5,449 decision consist of 3,497 decision requested by the DGT and 1,952 requested by the taxpayers.
To improve the effectiveness and efficiency of handling appeal and lawsuit hearings, DGT conducts the delegation handling of appeal and lawsuit hearings from the Head Office to the RTO unit of taxpayers registered at:
a. Large Taxpayers RTO, effective since January 1, 2022, based on Director General of Taxes Decree No. KEP-393/
PJ/2021; and
b. other RTOs in Jakarta areas, effective from October 1, 2022, based on Director General of Taxes Decree No. KEP- 444/PJ/2022.
Source: Directorate of Tax Objection and Appeal
Type of Tax Memory for
Case Review Contra-Memory
for Case Review Total
Income Tax 1,008 628 1,636
Value-Added Tax/Sales Tax on Luxury Goods 1,622 1,456 3,078
Land and Bulding Tax 34 2 36
Other (dispute) 33 227 260
Total 2,697 2,313 5,010
2,000 2,500 3,000 3,500
2,936
1,740
2,313 3,065
1,989 2,335
2,697 Request for Memory for Case Review and Counter-Memory for Case Review Submitted by DGT, 2018--2022
Request for Memory for Case Review and Counter-Memory for Case Review Submitted by DGT, 2022
Organizational Performance 101
Overview
2022 AnnualReport
DGT is building a Knowledge Management System (KMS) for tax disputes to improve the performance of Case Review handling. KMS is a web-based application that provides references to the results of the evaluation of Tax Court decisions and Supreme Court decisions that contain DGT opinions, taxpayer opinions, considerations and verdicts from the panel of judges, as well as the results of the evaluation of the decision of the panel of judges a quo.
DGT’s other efforts to follow up the evaluation of the Tax Court’s decision and the handling of the Case Review, namely:
a. develop parameters to evaluate Tax Court decisions;
b. create a book of tax dispute capita selecta that contains a collection of recurring disputes along with total statistics and the number of winning as well as a review of a tax dispute; and
c. sending feedback to the relevant directorates on the results of the evaluation of Tax Court decisions.
Source: Directorate of Tax Objection and Appeal Applicant
Verdict
Total Fully Granted Rejected Partially
Granted Unaccepted
DGT 77 3,393 0 27 3,497
Taxpayer 281 1,556 25 90 1,952
Total 358 4,949 25 117 5,449
E. OTHER DISPUTES SETTLEMENT AND LEGAL ADVOCACY