CHAPTER I

INTRODUCTION

1.1 Background
Indonesia is a country that is doing development in all fields that aims to improve
the welfare of Indonesia. In order for the development of the government to run smoothly
and in accordance with what is expected, it takes a lot of funds. The funds are collected from
various resources owned by the Indonesia both from natural resources such as petroleum
and natural gas or from the tax sector. In practice, to avoid any confusion in the tax system,
there are several tax assessments as a solution to this. In Indonesia alone, there are 4 tax
procision that are the basis of tax collection, namely Notice of Tax Underpayment
Assessment, Notice of Additional Tax Underpayment Assessment, Notice of Overpayment
Assessment, Notice of Nil Tax Assessment. The four types of Notice of Tax Assessment
above are generally issued for tax debt types of Income Tax and Value Added Tax (VAT).
As for the type of Land and Building Tax , Notice of Tax Assessment issued in the form of
Notification of Tax Due (SPPT). The legal product of Notification of Tax Due (SPPT) issued
by the Director General of Taxes is basically the same as the other four Notice of Tax
Assessment because both set the principal amount of tax as the tax debt to be paid or settled
by the Taxpayer. In addition, in the tax itself there are interpretations of tax law and
expiration of provisions that must be understood by all taxpayers. In this paper, it will be
reviewed on tax provisions, tax law interpretation, and expiry of provisions.

1.2 Problem Formulation

1.2.1 What kinds of tax interpretation?
1.2.2 What kinds of tax provision?
1.2.3 What is tax assesment expiration?
1.3 Purpose
To clearly know and understand about kinds of tax interpretation, kinds of tax
procision and meaning of tax assesment expiration.
1.4 Benefit
Can understand about kinds of tax interpretation, kinds of tax procision and meaning
of tax assesment expiration.

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 CHAPTER II

DISCUSSION

2.2 Tax Interpretations

A rule sometimes cannot be understood clearly or less clearly so that there
needs to be a way of interpretation to define the unclear rules. The unclearness of a
rule may be due to a gap between written rules and the legal consciousness of an
existing society, or because the written rules are incomprehensible or even have
varying meanings according to the existing language (in writing) read by readers of
these rules.
The question now is whether everyone can interpret the written rules that
are not / less clear? Of course the answer is no. If a rule raises various interpretations
in the opinion of those who read it, then the authorities decide its interpretation is
the judge, that is, in the event of a dispute brought to court. Of course, the
interpretation of judges only binds the parties that dispute (as per civil law) and is
not binding publicly.
Below are described various interpretations that are often used in the field
of civil law, but can also be used in the field of public law, including in tax law as a
tool to try to understand the rules (laws)
2.1.1 Historical Interpretation
Historical interpretation is the interpretation of a law by looking at the
history of the law. In order to understand such historical interpretation, it can
only be known from the meeting documents at the time of the making of the
Act. For example, documents of meetings of lawmakers, documents of
discussions between the government and the DPR, and other official
documents formally made by the government and the government with the
DPR. By using historical interpretation, it can be seen the intent of the
lawmakers for the content of a law.
2.1.2 Sociological Interpretation
Sociological interpretation is the interpretation of a provision in the law
that is adapted to the development of community life. As it is known that the
life of a society is always developing (dynamic), while the written law cannot
always follow the lives of people who always develop faster. Therefore, there
needs to be an adjustment between laws that are written with the development
(change) life of a society.
2.1.3 Systematic Interpretation
Systematic interpretation is on a provision in the law by relating it to other
provisions (articles) of the law (in one law) or by relating it to other provisions
(articles) of the other law.
Because the law consists of articles, the provisions of an unclear article can
be known by looking at the meaning or intent of the other articles of another
law, thus forming an interconnected system.

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2.1.4 Authentic Interpretation
Authentic interpretation is the interpretation of a provision in the law by
looking at what has been described in the law.
Usually in a law there is a section on general provisions which contents
explain the meaning or purpose of the provisions that have been arranged. Such
general provisions are often referred to as terminology to explain what is
deemed necessary. This is the terminology meant by authentic interpretation.
Meanwhile, the explanation of a section contained in the Supplement of the
State Gazette is not an authentic interpretation, but merely an explanation of
the contents of an article, which often in its explanation still causes ambiguity.
2.1.5 Grammatical Interpretation
Grammatical interpretation is the interpretation of a provision in the law
based on the sound of words in its entirety in sentences compiled by the
legislator. Among all of the existing interpretations, grammatical interpretation
is the most important interpretation compared to other interpretations, if the
words in the sentence of a passage in the law have been clearly defined, then
no longer shall any other means of interpretation be used. This is the
importance of lawmakers to choose proper words in composing a sentence into
a rule so it will not cause misunderstanding for the people who read it.
2.1.6 Analogical Interpretation
Analogical interpretation is the interpretation of a provision in the Act
by giving a metaphor (analogue) to the words contained in the Act, so that an
event that is not actually included in a provision so included based on the
analogy that have been made. According to Prof. Scholten, this analogical
interpretation is the same as a broad interpretation that broadens the meaning
of a provision.
R. Santoso Brotodihardjo, S.H. in his book "Pengantar Ilmu Hukum
Pajak", gave an example of an analogical interpretation by taking the word
"sale" to "transference into another hand" (from existing rules drawn to general
rules) then the word "transfer to another hand" is drawn a conclusion also
includes grants, income and wills. This interpretation is not allowed to
be used in the Tax Law because it can harm the taxpayer and there is no legal
certainty of the events that occurred. General rules not written in the Tax Law
(as a special rule) become applicable, whereas Article 23 clause (2) of the
UUD 1945 stipulates that all tax collection must be based on the Law (Special
Tax Law).

2.1.7 A Contrario Interpretation

Interpretation A Contrario is the interpretation of a provision in the Law
which is based on the resistance of understanding between the problems
encountered and the matter regulated in a law article. A conclusion is drawn
that the problem faced is not regulated in the article of law or in other words
the problem faced is beyond the provisions of the article a law. This

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 interpretation is also not allowed because it can harm the taxpayer and there is
no certainty in the law just as analogical interpretation.
The interpretations made by everyone do not have binding power.
Interpretations that have binding power are only authentic interpretations
under the Taxation Law and the interpretations made by tax court judges in the
event of a tax dispute between the Taxpayer and the fiscus. The tax court judge
has the task of finding the law in the provisions of the unregulated law, then
the judge must be able to find the law for the purpose of providing justice for
the parties to the dispute. Thus, the interpretation made by tax court judges is
a binding interpretation for the parties to resolve the tax dispute.

2.2 Various kinds of tax Tax Provision

In the tax law known various kinds of tax laws issued by the Director General of
Taxes known as Notice of Tax Assessment. There are several types of Notice of Tax
Assessment that can be issued, namely:
a. Notice of Tax Underpayment Assessment
b. Notice of Additional Tax Underpayment Assessment
c. Notice of Overpayment Assessment
d. Notice of Nil Tax Assessment
In addition to the four types of Notice of Tax Assessment, the Director General of
Taxes may issue another letter under the name of the Notice of Tax Collection (STP) as
well as the Notification of Tax Due (SPPT). Notice of Tax Collection is a bill that only
impose a number of sanctions in the form of sanction of interest and / penalty to the
Taxpayer. While the principal taxes are billed through legal products of administrative
means called Notice of Tax Assessment.
The four types of Notice of Tax Assessment above are generally issued for tax debt
types of Income Tax and Value Added Tax (VAT). As for the type of Land and Building
Tax , Notice of Tax Assessment issued in the form of Notification of Tax Due (SPPT).
The legal product of Notification of Tax Due (SPPT) issued by the Director General of
Taxes is basically the same as the other four Notice of Tax Assessment because both set
the principal amount of tax as the tax debt to be paid or settled by the Taxpayer.

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2.2.1 Notice of Tax Underpayment Assessment

a. Definition
Notice of Tax Underpayment Assessment is a tax assessment letter that
determines the amount of tax principal, the amount of tax credits, the amount of the
underpayment of the principal, the amount of administrative sanction, and the
amount of tax due.

b. Issuance of Notice of Tax Underpayment Assessment

Notice of Tax Underpayment Assessment issued if:
a. Based on the results of examination or other information, the tax payable is not or
less paid.
b. Tax Return (SPT) not delivered within the stipulated time period and after being
reprimanded in writing is not delivered on time as stipulated in the Reprimand
Letter.
c. Based on the result of examination or other information regarding Value Added
Tax and Sales Tax on Luxury Goods, it should not be compensated for the excess
of tax or should not be charged 0%.
d. The obligation to maintain bookkeeping is not fulfilled so that it cannot be known
the amount of tax payable; or
e. To the Tax Payer shall be issued the Taxpayer Identification Number and / or
confirmed as a Taxable Entrepreneur for VAT purposes.
Notice of Tax Underpayment Assessment may only be issued to Taxpayers
based on examination results or other information not fulfilling formal obligations
and / or material obligations. Other information is concrete data obtained or owned
by the Director General of Taxes, among others in the form of the result of tax
invoice confirmation and income tax deduction evidence.

c. Administrative Sanctions
a. If the Notice of Tax Underpayment is issued for reasons 2a and 2e, the amount of
the tax due shall be added by administrative sanction in the form of interest at the
rate of 2% per month no later than 24 months, calculated from the time the tax
becomes due or the expiration of the Tax Period, with the issuance of Notice of Tax
Underpayment.

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 b. If Notice of Tax Underpayment is issued for reasons 2b, 2c, and 2d, the
administrative sanction shall be levied in the form of an increase of:
1. 50% of the Income Tax which is not or less paid in one Tax Year.
2. 100% of Income Tax which is not or less cut, not or less collected, not or less
paid, and deducted or collected but not or less deposited.
3. 100% of Value Added Tax and Sales Tax on Luxury Goods which are not or
less paid.

d. Notice of Tax Underpayment function

a. Correction of the amount due under the Tax Return
b. Medium to impose sanctions
c. Tools for collecting taxes

e. Term of Issuance of Notice of Tax Underpayment

Within 5 (five) years after the tax expiration or the expiration of the Tax Period,
the Year of Tax or the Tax Year, the Director General of Taxes may issue a Notice
of Tax Underpayment.
Even if 5 (five) years have passed, the Notice of Tax Underpayment may still
be issued plus administrative sanction in the form of interest of 48% of the amount
of tax which is not or less paid, if the Taxpayer after that period is punished for
committing a crime in the field taxation or other criminal offenses which may result
in a loss to the state revenue based on a court decision having a permanent legal
power.

2.2.2 Notice of Additional Tax Underpayment Assessment

a. Definition
Notice of Additional Tax Underpayment Assessment is a tax assessment letter
that specifies an additional amount of the established tax.
b. Issuance of Notice of Additional Tax Underpayment Assessment
Notice of Additional Tax Underpayment Assessment is issued if new data is
found which results in the amount of tax payable after the inspection is conducted in
the context of issuance of Notice of Additional Tax Underpayment Assessments
c. Notice of Additional Tax Underpayment Assessment Functions
a. Correction of the amount due under the Notice

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 b. Means to impose sanctions
c. Tools for collecting taxes
d. Notice of Additional Tax Underpayment Assessment Sanctions
The amount of tax shortage payable in Notice of Additional Tax Underpayment
Assessment, plus administrative sanctions in the form of an increase of 10% of the
amount of the tax shortage.
Administrative sanction in the form of increment shall not be imposed if Notice
of Additional Tax Underpayment Assessment is issued based on the written
statement of the Taxpayer on his / her own will, provided that the Director General
of Tax has not initiated the inspection action in the issuance of Notice of Additional
Tax Underpayment Assessment.
e. Term of Issuance of Notice of Tax Underpayment
Within 5 (five) years after the tax expiration or the expiration of the Tax Period,
Year of the Tax, or the Tax Year if new data is found resulting in the addition of the
amount of tax payable after the inspection is conducted in the framework of the
issuance of Notice of Additional Tax Underpayment Assessment., Director General
Tax can issue it.
Even if 5 (five) years have passed, the Notice of Tax Underpayment may still
be issued plus administrative sanction in the form of interest of 48% of the amount
of tax which is not or less paid, if the Taxpayer after that period is punished for
committing a crime in the field taxation or other criminal offenses which may result
in a loss to the state revenue based on a court decision having a permanent legal
power.

2.2.3 Notice of Overpayment Assessment

a. Definition
Notice of Overpayment Assessment is a tax assessment letter that determines
the amount of tax overpayment because the tax credit amount is greater than the tax
payable or should not be payable.
b. Issuance of Notice of Overpayment Assessment
Notice of Overpayment Assessment issued after inspection, the amount of tax
credit or the amount of tax paid is greater than the amount of tax payable. Notice of
Overpayment Assessment issued for:
a. Income Tax if the tax credit amount is greater than the amount of tax payable.

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 b. Value Added Tax if the tax credit amount is greater than the amount of tax
payable. If there are many taxes levied by the VAT, the amount of tax payable is
calculated by the amount of the Output Tax less the tax levied by the Tax collector
of the Value Added Tax; or
c. Sales Tax on Luxury Goods when the tax amount paid is greater than the amount
of tax payable.
c. Notice of Overpayment Assessment Function
As a tool or medium to refund tax overpayment.

2.2.4 Notice of Nil Tax Assessment

a. Definition
Notice of Nil Tax Assessment is a tax assessment letter that determines the amount
of tax principal equal to the amount of tax credits or non-taxes and no tax credit.
b. Issuance of Notice of Nil Tax Assessment
Issuance of Notice Of Nil Tax Assessment issued for:
a. Income Tax when the tax credit amount is equal to tax payable or unpaid tax and
no tax credit
b. Value Added Tax if the tax credit amount is equal to the amount of tax payable,
or tax is not due and there is no tax credit. If there is a tax levied by a Tax Collector
of Value Added Tax, the amount of tax payable is calculated by the amount of
the Output Tax less the tax levied by the Tax Collector of the Value Added Tax;
or
c. Sales Tax on Luxury Goods when the tax amount paid is equal to the amount of
tax payable or tax payable and no tax payment.
2.2.5 Notice of Tax Collection
a. Definition
Notice of Tax Collection is a letter to conduct tax invoice and / or administrative
sanction in the form of interest and / or penalty.
b. Issuance of Notice of Tax Collection
Notice of Tax Collection is issued if:
a. Income Tax in the current year is not or less paid
b. Days of the research result there is a shortage of tax payments as a result of wrong
write and / or miscalculation

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 c. Taxpayer shall be subject to administrative sanction in the form of penalty and /
or interest
d. Entrepreneurs who have been confirmed as Taxable Entrepreneurs, but do not
make tax invoices or make tax invoices, but not on time
e. Entrepreneur who has been confirmed as a Taxable Entreprenuers for VAT
purposes that does not complete the tax invoice (exceptions: buyer's identity,
name and signature)
f. Taxable Entrepreneurs report tax invoices not in accordance with the period of
issuance of tax invoices; or
g. A Taxable Person for VAT purposes that fails to produce and has been given a
refund of Input Tax as referred to in Article 9 Paragraph (6a) of the 1984 Value
Added Tax Act and its amendment.
c. Notice of Tax Collection Functions
a. As a correction on the amount of tax payable according to Tax Return of
Taxpayer.
b. Medium of imposing administrative sanction in the form of interest or penalty
c. Tools for collecting taxes
d. Notice of Tax Collection Sanctions
a. The amount of taxes payable (points 2a and 2b) plus administrative sanction in
the form of interest of 2% per month for a maximum of 24 months, calculated
from the time the tax becomes due or the expiration of the Tax Period, Year of
Tax or Fiscal Year up to the issuance of the Notice of Tax Collection.
b. Against an employer or a Taxable Person for VAT purposes (2d, 2e, or 2f points),
in addition to the obligation to deposit the tax payable, shall be liable to
administrative sanctions in the form of a 2% penalty of the Tax Basis.
c. Against Taxable Entrepreneurs (point 2g) shall be liable to administrative
sanctions in the form of interest of 2% per month from the amount of taxes
reimbursed, calculated from the date of issuance of the Decree on Refund of
Overpayment Tax until the date of issuance of the Notice of Tax Collection, and
part of the month is calculated fully 1 month.
e. Law Power of Notice of Tax Collection
Notice of Tax Collection has the same legal power as the Notice of Tax Assessment,
so in the case of billing can be done with a Distress Warrant.
2.2.6 Notification of Tax Due
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 a. Definition
Notification of Tax Due is a letter issued by the Directorate General of
Taxation to notify the amount of tax payable to the Taxpayer. Notification of Tax
Due is regulated in Article 10 paragraph (1) of Law no. 12 of 1994 on Land and
Building Tax. Notification of Tax Due is a document containing the amount of tax
debt on the earth and buildings that must be paid by the Taxpayer at the time
specified in the Notification of Tax Due.
b. Issuance of Notification of Tax Due
Notification of Tax Due is issued based on Tax Object Notification Letter which
has been submitted by Taxpayer or based on data of tax object that already exist in
Directorate General of Taxes.
c. Notification of Tax Due Sanction
Notification of Tax Due must be paid no later than 6 months from the date
of receipt of Notification of Tax Due. If the Notification of Tax Due is not paid, it
will be imposed a 2% administrative fine of one month calculated from the due
date until payment day for a maximum period of 24 months.

2.3 Assesment Expiration

Assesment Expiration is a time limit specified by law to be able to notice of tax
assesment for tax debt of tax payer which is aimed that taxpayer obtain law certainty for
its tax debt. Article 13 of the KUP Law No. 16 year 2000 sets the expiration of the
determination to be for ten years. That is, the Directorate General of Taxes (Fiskus) is
given a time limit up to ten years after the time the tax is due to issue SKPKB. If within
ten years the tax authorities do not issue SKPKB, then the issuance of SKPKB after the
expiry of the stipulation deadline can no longer be made and the tax debt of the WP
becomes expired. Nevertheless, the tax authorities may still issue the SKPKB even if the
ten year period has passed if the taxpayer after 10 years period is convicted of a criminal
offense in the field of taxation based on a court decision that has obtained permanent legal
force (in kracht van gewisjde)
However, since the enactment of UU No 28 of 2007 (effective on 1 January 2008) as
amendment of UU No. 16 of 2000 it is stipulated that the period of expiry of the
determination shall be five years. Therefore, SKPKB issued since January 2008 will
expire in five years, so will expire on 2013. Nevertheless, even though the five-year term
has been passed, the SKPKB can still be issued plus an administrative interest sanction of

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48% of the amount of tax which is not or less paid if the Tax Payer after such period is
convicted of a criminal act of taxation or other criminal offense which may result in a loss
of state income based on a court decision having a permanent law power.
In the law explained that to know if the taxpayer really has committed a criminal act
of taxation, of course must be proven through trial court process that can take more than
five years. It is possible that taxpayers have been investigated by Pegawai Negeri Sipil
(PNS), but by public prosecutors are not prosecuted under criminal sanctions. For
example, the Taxpayer is sentenced by a judge for committing a smuggling and the judge's
verdict indicates the existence of a tax object that has not been taxed. In such case, in order
to obtain unpaid taxes, such taxpayer can still be issued SKPKB plus administrative
sanction interest of 48% from the amount of taxes that are not or underpaid even though
the period of five years has passed.

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 CHAPTER III
CONCLUSION
3.1 Conlusion
1. In the tax law known various kinds of tax laws issued by the Director General of
Taxes known as Notice of Tax Assessment. There are 4 types of Notice of Tax
Assessment that can be issued which is notice of Tax Underpayment Assessment,
Notice of Additional Tax Underpayment Assessment, Notice of Overpayment
Assessment, Notice of Nil Tax Assessment.
2. There are seven kinds of tax interpretation which is historical interpretation,
sociological interpretation, systematic interpretation, authentic interpretation,
gramatical interpretation, analogical interpretation, a contario interpretation.
3. Assesment Expiration is a time limit specified by law to be able to notice of tax
assesment for tax debt of tax payer which is aimed that taxpayer obtain law
certainty for its tax debt

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 REFERENCES

Mardiasmo. 2016. Perpajakan: Edisi Terbaru 2016. Yogyakarta: Penerbit ANDI

Burton, Richard, and Wirawan B. Ilyas. Hukum Pajak: Teori, Analisis, dan Perkembangannya.
Jakarta: Penerbit Salemba Empat

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