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Abolition of tax objection institute recommended

July 29, 2009 - 06:59 AM

Taxation observer has recommended the abolition of tax objection institute in the Directorate General of Taxatio because the institution is deemed ineffective and not independent, Bisnis Indonesia Daily reported on Wednesday.

Ali Kadir, tax observer from the Political and Social Science Department of Jakarta-based University of Indonesia said that most of the objection cases submitted by taxpayers are rejected by the Directorate General of Taxation so that the cases must be settled in the tax court.

“Tax cases piles up in the tax court so that the objection institute needs to be upgraded to become an administrative appeal institution having independent authority,” he said in panel discussion on the position of tax court in Jakarta on Tuesday.

Chairman of Tax Court Abdullah Anshari Ritonga responds positively to the recommendation because an independent objection institute is also needed to select tax cases proper to come into the tax court.

In the meantime, Chairman of Indonesia Legal Aid Institute Eddy Mangkuprawira said that there is an impression that the Directorate General throws out responsibility for tax disputes to the tax court. (*)

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