Why Does the PGN Tax Dispute Case Occur?

Suara.com – The case of the State Gas Company tax dispute is considered to be one of the impacts of the ambiguity of tax law in Indonesia.

The difference in interpretation of tax laws that has occurred so far is considered to be one of the obstacles to investment.

Pratama-Kreston Tax Research Institute Executive Director Prianto Budi Saptono said the 2017 World Economic Forum survey placed tax regulations as the ninth factor that hinders business in Indonesia.

“This tax law ambiguity has been going on for years without a complete solution,” said Prianto in a webinar with the theme of PGN vs DGT Case Analysis: Tax Law Examination & Interpretation Methods, Wednesday (13/1/2021).

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The Law on Taxation Cluster Work Creation is considered to only regulate a number of matters related to ease of investment without resolving the problem of tax law ambiguity which is actually a barrier to investment.

He said that the case that is currently involved in PGN regarding the 2012 and 2013 tax years is one of the proofs. In the legal review filed by the Directorate General of Taxes, the Supreme Court granted the request so that PGN had to pay Rp3.06 trillion.

Prianto said this dispute arose because PGN and the Directorate General of Tax had different interpretations of the status of natural gas as a tax object subject to Value Added Tax. PGN and the Directorate General of Tax are both considered to refer to strong evidence and based on tax regulations.

“But the two parties have different interpretations of the tax regulations,” he said.

As a result, the Tax Court judges granted PGN’s request. Meanwhile, the Supreme Court panel of judges granted the PK request submitted by the Directorate General of Taxes.

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