TRANSFER PRICING ISSUES IN INDONESIA

Abstract

This study proposes ways to resolve transfer pricing (TP) cases in Indonesia. The method used is a normative analytical juridical legal research method by looking at and analyzing problems following applicable regulations. From the study results, it was found that there are three ways to settle cases of TP in stages, namely 1. Investigative audit: if the tax authority suspects that TP has been abused, the final result is a tax assessment letter (SKP). 2. through the tax court if the taxpayer (WP) is not satisfied with the results of the Investigative Audit decision. If necessary, appeal to the Supreme Court. However, this legal settlement takes a long time, impacting the company's liquidity and affecting state revenues. Besides that, the compromise through this tax court is often suspected of being unfair by taxpayers. It is more favorable to the tax authorities because the tax court is under the Ministry of Finance, which is also the supervisor of the taxation authority. 3. through a win-win solution scheme provided by the Organization for Economics. Co-operation and Development (OECD) through the Mutual Agreement Procedure (MAP). However, settlement through the MAP channel is considered less effective because it does not provide certainty or require the parties to reach an agreement. The best solution must be through the tax court to be legal certainty and justice for the parties. It's just that this institution must be under the judicial institution of the Supreme Court.