Investigators in the Taxation Sector, What are their Authorities?

The investigation process is one of the important stages to resolve a criminal dispute. The investigation process is not only carried out in the criminal field but also applies in the field of tax law.

In this regard, the previous article has described the definition and purpose of investigations in the taxation sector. Furthermore, this article explains the authority of investigators in the taxation sector.

It should be understood first, that two parties can become investigators as stipulated in Article 1 point 1 in conjunction with Article 6 paragraph (1) of Law no. 8 of 1981 concerning the Criminal Procedure Code (KUHAP).

As for the two parties who hold the role of investigators, namely state police officers of the Republic of Indonesia or certain civil servants who are given special authority by law to conduct investigations.

So, who can carry out the investigation process in the taxation sector? Then, what are the powers of the tax investigator?

Provisions related to parties who can become tax investigators and their authorities are regulated in the General Provisions and Tax Procedures (UU KUP) stated Law no. 11 of 2020 concerning Job Creation (Job Creation Law).

In Article 1 number 32 in conjunction with Article 44 paragraph (1) of the KUP Law, the investigation of criminal acts in the taxation sector can only be carried out by certain Civil Servant Officials within the Directorate General of Taxes who are given special authority as investigators of criminal acts in the taxation sector. The process of investigating criminal acts in the taxation sector is carried out according to the provisions stipulated in the applicable Criminal Procedure Law.

Furthermore, there are 11 tax investigators’ powers as regulated in Article 44 paragraph (2) of the KUP Law. First, receive, seek, collect, and examine information or reports relating to criminal acts in the taxation sector so that the information or report becomes more complete and clear.

Second, researching, seeking, and collecting information regarding individuals or entities regarding the truth of the acts committed in connection with criminal acts in the taxation sector.

Third, requesting information and evidence from individuals or entities in connection with criminal acts in the taxation sector. Fourth, examine books, records, and other documents relating to criminal acts in the taxation sector.

Fifth, conduct searches to obtain evidence of books, records, and other documents, as well as confiscate the evidence. The confiscation can be carried out, both on movable and immovable goods, including bank accounts, receivables, and securities belonging to taxpayers, tax bearers, and/or other parties who have been designated as suspects.

Sixth, requesting the assistance of experts in the context of carrying out the task of investigating criminal acts in the taxation sector. Seventh, ordering to stop and/or prohibiting someone from leaving the room or place while the inspection is in progress and checking the identity of the person, object, and/or document being brought.

Eighth, photographing someone related to criminal acts in the field of taxation. Ninth, summon people to hear their statements and be examined as suspects or witnesses.

Tenth, stop the investigation. Eleventh, take other necessary actions for the smooth investigation of criminal acts in the taxation sector according to the provisions of the legislation.

By Article 44 paragraph (4), in the context of exercising their investigative authority, investigators may request assistance from other law enforcement officials. The authority of investigators in the field of taxation holds the key to the success of the investigation process.

If the tax investigator does not have strong and binding authority, then there is a possibility that the investigation process cannot run optimally.

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