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Govt set to clean up `messy' tax tribunal system

The recent judicial corruption case involving tax officer Gayus Tambunan has drawn public attention to the tax tribunal system, especially following the publication of data showing that the court often rules in favor of tax payers who appeal

Bagus BT Saragih (The Jakarta Post)
Jakarta
Mon, April 26, 2010

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Govt set to clean up `messy' tax tribunal system

T

he recent judicial corruption case involving tax officer Gayus Tambunan has drawn public attention to the tax tribunal system, especially following the publication of data showing that the court often rules in favor of tax payers who appeal.

Legal expert and former Constitutional Court chairman, Jimly Asshiddiqie, said the tax tribunal had many loopholes but it was only a small part of the country's messy judicial system.

"All of the special courts, like the tax tribunal, are a mess. Let's reform the whole system instead of doing it partially," he told The Jakarta Post over the weekend.

Gayus's case has snowballed, bringing down officials at the tax office, the Attorney General's Office and district court with him.

Five prosecutors involved in Gayus's case are scheduled to be questioned by National Police on Monday.

Indonesia's judicial system currently adopts nine special courts: the commercial court, the tax tribunal, the state administrative court, the human rights court, the corruption court, the labor court, the juvenile court, the fisheries court and the religious court.

Jimly said the special courts were initially separated for efficiency but the goal had never been reached, and added the separation should be evaluated.

"Has it succeeded to bring better judicial system, or given more room to abuse the system?" Jimly said.

The tax tribunal is under the Finance Ministry instead of the general judicial system. Consequently, it is not subject to the Supreme Court's and the Judicial Commission's supervision.

Chief justice Harifin Tumpa has said the tax tribunal law was inconsistent with the judicial jurisdiction law and therefore it had become the subject of controversy.

President Susilo Bambang Yu-dhoyono has said the tax tribunal, with loose supervision, could be used as an "arena of collusion".

The Judicial Mafia Taskforce responded to Yudhoyono's statement by meeting with the Judicial Commission last week on the issue.

Taskforce member Mas Achmad Santosa said one way to reform the tax tribunal would be to give the Judicial Commission the authority to supervise tax judges.

"In the next few days, we will meet with all stakeholders, including the taskforce, the Supreme Court, the Judicial Commission, the Finance Ministry, House of Representatives' Commission III on law and human rights, and the Taxation Committee," Mas Achmad said.

Judicial Commission chairman Busyro Muqoddas welcomed the plan.

"The tax tribunal system has been abused by high-ranking tax officers. We must do something," he said.

Director General of Taxation at the Finance Ministry Tjiptardjo admitted the tax tribunal is one of the facets exploited for collusion that is spiralling out of control, as seen in the recent case of tax official Gayus.

Gayus worked at the directorate of objection and appeal, allegedly brokering deals with the tax tribunal.

"As it becomes increasingly difficult to fool the system, corrupt officials are turning to the tax tribunal to continue their illegal practices," Tjiptardjo said.

The House's Commission III, meanwhile, is gearing up to revise the Judicial Commission law.

Commission member Gayus Lumbuun of the Indonesian Democratic Party of Struggle confirmed one item on the agenda would be the expansion of the Judicial Commission's authority to supervise tax judges.

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