IN ADDITION TO being done in public, the initial evidence examination (bumper) can also be done in private.
If the taxpayer who is being audited to test compliance with tax obligations is also carried out a closed bookkeeping examination, the tax audit will be suspended or postponed.
“If the Taxpayer is subject to an Audit to test compliance with the fulfillment of tax obligations, a closed Preliminary Evidence Audit is also carried out, the Audit to test compliance with the fulfillment of tax obligations is suspended by making an Audit progress report if the Preliminary Evidence Audit in a closed manner is followed up with an investigation.”
The suspension of the audit to test compliance with the fulfillment of such tax obligations must be notified in writing to the taxpayer and carried out until:
- the investigation is terminated by Article 44A or Article 44B of the KUP Law; or
- the existence of a court decision on a crime in the field of taxation which has permanent legal force and a copy of the decision has been received by the director-general of taxes.
Furthermore, the deferred examination can be resumed or terminated under certain conditions. First, the tax audit can be resumed if it meets one of the following conditions:
- the investigation is terminated because there is not enough evidence, or the incident is not a tax crime, or the suspect has died as referred to in Article 44A of the KUP Law; or
- the investigation is continued with the prosecution and court decisions on criminal acts in the taxation sector which have a permanent legal force that decides to be free or free from all lawsuits and a copy of the court decision has been received by the director-general of taxes.
If the examination is continued, the testing period or the extended test period is extended for a maximum period of 4 months. Also, see the article ‘ How long does a tax audit take? Here are the Terms ‘.
Second, the suspended inspection is terminated if:
- the investigation was terminated because of Article 44B of the KUP Law (unless there is still an overpayment of taxes based on the results of the investigation);
- the investigation is stopped because the incident has expired as referred to in Article 44A of the KUP Law; or
- The investigation is continued with the prosecution and court decisions on criminal acts in the field of taxation which have permanent legal force other than those referred to in Article 66 paragraph (4) letter b PMK PMK 17/2013 in conjunction with PMK 18/2021 and a copy of the court decision has been received by the director-general tax.
If the audit is terminated as regulated above, by Article 67 paragraph (2) of PMK 17/2013 in conjunction with PMK 18/2021, the tax auditor must submit a notification letter of termination of the audit to the taxpayer.
In addition, it should also be understood that the Director-General of Taxes can still conduct an audit if after the audit is terminated there are data other than those disclosed in Article 8 paragraph (3) or Article 44B of the KUP Law.