When it comes to Legal & Tax matters, making the right move is vital

What is the difference between a civil and commercial litigation case?

Civil litigation covers a broader range of disputes including personal injury and family law, while commercial litigation specifically deals with business-related disputes like contracts, partnerships, and corporate matters.

What are the common types of civil & commercial litigation in Indonesia?

Broadly speaking, there are two legal disputes, the Breach of Contract and the Unlawful Act issues.

What is a commercial contract dispute?

A commercial contract dispute arises when parties disagree on the interpretation or performance of a contract. Common issues include non-payment, breach of terms, and delivery of goods or services.

How long does civil & commercial litigation take in Indonesia?

The duration varies depending on the complexity of the case and the court’s schedule. Practically it takes around 6 (six) months on the first court instance (District Court).

Can disputes be resolved earlier before going to the court hearing process?

Yes, the court provides and facilitates the parties to settle the dispute in the early stage through a mediation process which involves a neutral mediator helping the parties settle.

How does commercial litigation interact with Indonesian bankruptcy laws?

Commercial litigation can intersect with Bankruptcy if a debtor is unable to pay. We assist in filing claims, representing your interests in bankruptcy proceedings, and ensuring your rights as a creditor are protected.

How do I enforce a court decision in a commercial dispute?

The specific enforcement methods depend on the nature of the judgment and legal mechanism. Please consult with our lawyer.

What are the risks of not addressing civil or commercial disputes promptly?

Delaying action can lead to escalated conflicts into more complicated, exceeding the statute of limitation, increased legal costs, and potential damage to your business.

What is the role of an expert witness in commercial litigation?

An expert witness provides specialized knowledge and testimony to support your case. They can help explain complex issues to the court and bolster your arguments with authoritative insights.

What is the difference between Litigation and Arbitration?

Litigation is a court-based process, while Arbitration is another legal forum, that involves neutral arbitrators who issue a binding decision. Arbitration is typically faster and more private but both parties shall mutually agree to settle the dispute into Arbitration and can be limited in scope of the legal disputes and legal remedy options.

What is the role of evidence in commercial litigation?

Evidence is crucial in proving your case. This includes documents and witness testimony. Our lawyer assists in gathering and presenting evidence effectively to support your claim.

What happens if a party does not comply with a court order?

Non-compliance can lead to enforcement actions such as asset seizure or additional legal penalties. Our lawyers take necessary steps to ensure compliance with court orders and protect your interests.

What is the importance of contract drafting in preventing commercial litigation?

Proper contract drafting helps prevent disputes by clearly outlining the rights and obligations of each party. We assist in drafting and reviewing contracts to minimize the risk of future litigation.

Can foreign companies litigate in Indonesia?

Yes, they must comply with local laws and legal procedures. We provide guidance and representation to navigate the Indonesian legal system effectively.

What should I do if I am being sued or receive a legal notice or summons from an Indonesian court?

Contact our lawyer immediately to review the notice or summons, understand your legal obligations, formulate and develop the legal strategy. Prompt action is essential to protect your rights and interests.

What is a tax dispute, and how does it arise in Indonesia?

A tax dispute occurs when there is a disagreement between the taxpayer and the Indonesian Tax Authorities (Direktorat Jenderal Pajak, DJP) regarding tax assessments, tax payments, or the interpretation of tax regulations. Disputes commonly arise after a tax audit when the taxpayer disagrees with the findings of the DJP.

How does a tax audit work?

During a tax audit, the tax authority reviews your financial records and tax filings to ensure compliance. If discrepancies are found, they will issue a notice of their findings.

What can I do if I disagree with a tax audit’s findings?

You can file a Tax Objection within three months of receiving the audit results. This is your formal request for the tax authority to re-examine their decision.

What happens if my Tax Objection is rejected?

If your objection is rejected, you can escalate the matter by filing a Tax Appeal with the Tax Court within three months of receiving the rejection.

What is a Tax Lawsuit?

A Tax Lawsuit challenges administrative actions by the tax authority that are unrelated to assessments, such as disputes over tax refunds or collections.

When can I file a Tax Judicial Review?

A Tax Judicial Review is the final legal step, brought before the Supreme Court to correct substantial legal errors made by the Tax Court. This is done only after exhausting all other avenues.

Can I resolve a tax dispute without going to court?

While negotiation is possible, formal out-of-court settlements are rare in Indonesian tax disputes. Our professional advice is crucial to exploring your options.

What are the typical outcomes of a tax objection?

The outcomes of a tax objection can be varied. The tax authority may fully accept, partially accept, or reject your objection, depending on the strength of your argument and evidence provided.

How long does it take to receive a decision on a Tax Objection?

The tax authority typically takes 12 months from the date of filing to issue a decision on a Tax Objection. If no decision is made within this time, the objection is considered rejected by law.

Can I settle my tax liabilities during the dispute process?

Yes, settling your tax liabilities during the dispute process is possible. However, this may impact the progression of the dispute. Consulting with a tax professional like our firm is advised before making any settlement decisions.

What are the common reasons for a Tax Judicial Review?

Common reasons for a Tax Judicial Review include substantial legal mistakes in the lower courts’ rulings, misinterpretation of tax laws, or procedural violations that affected the fairness of the judgment.

What penalties can I face in a tax dispute?

Penalties can include fines, interest charges, and administrative sanctions depending on the nature of the dispute. If a tax deficiency is found, additional penalties may apply for late payments or underreporting.

What is the time limit to file a Tax Lawsuit?

A Tax Lawsuit must be filed within 90 days of the administrative action you are challenging (such as a refusal of a refund). Missing this deadline can result in the dismissal of your lawsuit.

What types of administrative decisions can be challenged through a Tax Lawsuit?

You can challenge decisions such as denial of tax refunds, incorrect tax collections, or penalties imposed outside of a tax assessment.

What happens if I win a Tax Appeal or Tax Lawsuit?

If you win, the court may order the tax authority to revise or cancel their previous decision. This could result in a refund, removal of penalties, or a corrected tax assessment.

Can I request an extension for filing a Tax Objection or Tax Appeal?

No, deadlines for filing Tax Objections and Tax Appeals are strictly enforced under Indonesian tax law.

What is the burden of proof in a tax dispute?

In Indonesian tax disputes, the burden of proof lies with the taxpayer. You must provide evidence and documentation that supports your claim against the tax authority’s assessment or decision.

What happens if I fail to provide sufficient evidence in a Tax Objection or Tax Appeal?

If you fail to provide enough evidence, the tax authority or the Tax Court may rule in favor of the government. Therefore, it is crucial to present a well-prepared and substantiated case.

What is the impact of a Tax Dispute on my business operations?

While a tax dispute is ongoing, it may cause financial uncertainty. However, unless there are severe violations, the tax authority generally does not halt business operations during the dispute. Consulting with tax professionals like our firm can help mitigate risks.

Can I negotiate with the tax authority before filing an objection or appeal?

Informal negotiations or discussions can sometimes lead to clarification or resolution before entering the formal dispute resolution process. However, once a decision has been made, formal procedures are required to challenge it.

Company Regulations is internal rules established by the employer to govern the rights and obligations of both parties. They provide structure on issues such as working conditions, disciplinary actions, leave policies, and other employment terms. The regulations must align with the legal framework and be reviewed every two years. This regulation must be registered and approved by the Indonesian Ministry of Manpower.

Employees who are terminated are entitled to severance pay, long-service pay (if applicable), compensation rights, and other benefits as mandated by Government Regulation No. 35 of 2021. The amount depends on the reason for termination and the employee’s length of service.

What rights do victims have in Indonesian criminal proceedings?

Victims of crime have the right to report the crime and provide evidence, be informed of the progress of the investigation and trial, seek restitution or compensation, and request protection if they are at risk of harm.

Can a foreigner be tried under Indonesian criminal law?

Yes, if they commit a crime within Indonesian territory.

Are there alternative dispute resolution options for criminal cases in Indonesia?

In general, criminal cases in Indonesia are resolved through the court system. However, for certain cases, the alternative resolution like Restorative Justice practices may be considered.

What is Restorative Justice in the context of Indonesian criminal law?

Restorative Justice focuses on repairing the harm caused by criminal behavior through reconciliation and restitution rather than punitive measures. It involves mediation between the victim and offender to reach a mutually agreeable resolution.

What constitutes a criminal offense under Indonesian law?

It is an act that violates the Indonesian Criminal Code (KUHP) or other specific laws and regulations and is punishable by sanctions such as fines, imprisonment, or other penalties. The KUHP outlines various categories of offenses, including theft, assault, fraud, corruption, etc.

What does Indonesian law recognize the different types of criminal offences?

There are three main types:

• Crimes (kejahatan): serious offenses such as robbery, theft, fraud, etc.
• Misdemeanors (pelanggaran): lesser offenses such as traffic violations and minor thing.
• Special Crimes: offenses covered by specific laws, such as corruption, narcotics, terrorism, etc.

How does the Indonesian criminal justice system handle cases of corruption?

Corruption cases are handled by specialized anti-corruption courts (Pengadilan Tindak Pidana Korupsi). The Indonesian Corruption Eradication Commission (Komisi Pemberantasan Korupsi—KPK) investigates and prosecutes high-profile corruption cases.