Import Tax Disputes: Identification of Causes and Problem-Solving Strategies

According to Indonesian Taxation Law, the Directorate General of Customs and Excise (DGCE) holds the authority to collect import taxes. When there is a deficiency in the amount of taxes paid, DGCE issues a Notice of Underpayment. However, from 2016 to 2022, there have always been disputes that resulted in appeals regarding these notices, with an average of 105 documents per year. This study aims to analyze the different types of dispute materials, causes, and recommendations to minimize future occurrences. This research uses a case study approach and qualitative methods with the Root Cause Analysis framework as a basis for cause analysis and research recommendations. Content analysis was used to classify opinions from parties involved in Tax Court Rulings. Interviews were conducted to confirm the literature review and content analysis conducted beforehand. The results show that there are 5 (five) causes of import tax disputes: substances, procedures, authorities, examiners, and importers. This study recommends several points to minimize the occurrence of disputes in the future and eventually help the domestic industry to grow further, including changes in import tax regulations, solidification of customs regulations, standardization of examination procedures, more firm authority in import tax examination and determination, continuous education and training for examiners, and counseling to increase importers’ understanding of import taxes.