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Why choose arbitration over traditional litigation?

Arbitration is often chosen for its confidentiality, flexibility in procedure, and the ability to select arbitrators with expertise in the subject matter of the dispute.

What types of disputes are suitable for arbitration in Indonesia?

Commercial disputes

What are the costs associated with arbitration in Indonesia?

It includes administrative expenses of the arbitral institution, arbitrators’ fees, legal fees, and other expenses related to the proceedings.

How to enforce arbitration awards to make it legally binding and force in Indonesia?

The arbitration awards shall be registered in Indonesian court maximum 30 (thirty) days after the award is issued, and then shall obtain a court approval.

Can the Indonesian arbitration awards be challenged or cancelled in Indonesian courts?

Yes, under certain circumstances.

What is the legal remedy if an arbitration award is cancelled by Indonesian court?

Filing an appeal to Indonesian Supreme Court.

What happens if one party refuses to participate in arbitration proceedings in Indonesia?

If one party refuses to participate in arbitration proceedings in Indonesia, the arbitral tribunal may proceed with the arbitration and make a decision based on the evidence and arguments presented by the participating party.

A CLA is a negotiated agreement between the employer and a registered labor union, outlining terms of employment for the union members. It covers salaries, benefits, dispute resolution mechanisms, and working conditions. CLAs must be registered with the Ministry of Manpower.

Failure to register a foreign marriage in Indonesia may lead to not having a legal standing and complications in legal matters such as property ownership and inheritance matters. It is important to ensure proper registration to secure legal recognition and rights in Indonesia.

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.

Postnuptial Agreement, known as “Perjanjian Setelah Nikah” in Indonesian, is similar to a Prenuptial Agreement but is entered into after marriage.