Indonesia operates a self-assessment regime, but this is somewhat of a misnomer. The extensive prepayment and withholding provisions result in a significant risk of overpayment and refunds will only be made after a full tax audit. In addition, audits and verifications are frequent occurrences even for those taxpayers who do not find themselves in an overpayment situation. Audits and verifications invariably result in significant adjustments and litigation, in this context meaning appeal to Tax Court, is common. It is essential that taxpayers know the tax impact resulting from their business structure and transactions and have access to adequate resources to be able to defend their positions when subjected to scrutiny.
Our practice includes personnel with all the necessary qualifications to represent taxpayers in dealings with the Tax Office and in any necessary appeals to Tax Court, and with a wealth of experience in defining and executing strategy in all aspects of tax controversy and litigation. We are abreast of current developments in tax audit strategy and the prospects of resolution at each stage. Our expertise in transfer pricing issues, which often lead to the largest adjustments, complements our qualifications and experience and facilitates optimum outcomes.