Page 2 - Newsletter (The Terms of Service of The DGT and Tax Court Temporary Suspension in Response to COVID-19)

DDTC Newsletter Vol.03 | No.06 I March 2020 Page 2 of 8

The Terms of Service of The DGT and Tax Court

Temporary Suspension in Response to COVID-19

Temporary Suspension of Trial the Amendment to SE-01/PP/2020 concerning Court
Proceedings and Other Services by Service Policies to Prevent the Spread of Corona Virus
Disease (COVID-19) in the Tax Court Environment (SE-
the Tax Court 02/PP/2020).

The tax court has temporarily suspended trial proceedings Under the latest regulation, the period of temporary
and other services from 17 March to 31 March 2020. The suspension of tax court trial proceedings and services
temporary suspension of the tax court’s operations is originally set to 31 March 2020 is extended to 3 April
aimed at preventing the spread of Corona Virus Disease 2020. Moreover, this regulation emphasizes that the
2019 (COVID-19) within the tax court environment. policy of temporary suspension of tax court operations
is subject to periodic evaluation in accordance with
This policy is implemented with due regard to the World
the Central Government/Regional Governments’
Health Organization’s (WHO) official statement declaring
instructions and policies in addressing COVID-19.
COVID-19 as a global pandemic. Moreover, President of
the Republic of Indonesia, Joko Widodo, has declared
COVID-19 as a non-natural national disaster thereby Exemption from Ethyl Alcohol Excise
requiring measures to mitigate and anticipate the spread for Antiseptic Materials
of COVID-19 in the tax court.
The policies on the temporary suspension of tax court The Directorate General of Customs and Excise (DGCE)
provides an excise exemption facility for ethyl alcohol
operations are outlined in the Chairperson of the
Republic of Indonesia Tax Court Circular Number SE-01/ used to produce hand sanitizers, surface sanitizers,
antiseptics, and the like as a follow-up measure to
PP/2020 concerning Court Service Policies to Prevent
the Spread of Corona Virus Disease (COVID-19) in the prevent the spread of Corona virus, both in the form of
raw materials and supporting materials.
Tax Court Environment (SE-01/PP/2020).
This exemption is outlined in the DGCE Circular Number
In further detail, five services below are temporarily
suspended by the tax court. SE-04/BC/2020 concerning the Exemption of Ethyl
Alcohol Excise as a Follow-up Measure to Prevent the
1. Trial proceedings scheduled between 17 March Spread of Corona Virus Disease (COVID-19) (SE-04/
2020 to 31 March 2020 are postponed until further
BC/2020).
notice.
The scope of the regulation includes the implementation
2. Services of receiving appeal and/or claim request of ethyl alcohol excise exemption for social purposes. This
letters. social objective is intended for the process of providing
3. Services of receiving judicial review request letters. raw materials or supporting materials in the production
of final products that are not goods subject to excise in
4. Services through the helpdesk other than appeal/ the context of COVID-19 prevention and control.
lawsuit and judicial review requests.
The regulatory scheme will refer to the Director General
5. Services of sending copies of tax court decisions and of Customs and Excise Regulation No. 43/BC/2017
copies of judicial review decisions. concerning the Procedures for Granting and Revoking
The temporary suspension of tax court services will not the Decree on Excise Exemption of Ethyl Alcohol and
be taken into account in the calculation of the period Beverage Containing Ethyl Alcohol (DGCE Reg. No.43/
of audits, filing an appeal and/or lawsuit, submission BC/2017).
of judicial review requests, and sending copies of court Further, this regulation sets forth that business actors,
decisions as regulated in Law Number 14 of 2002
i.e. manufacturers or ethyl alcohol storage business
concerning Tax Courts (Tax Court Law). owners may be given an exemption from excise duty for
Further, between 17 March 2020 to 31 March 2020, social purposes. Such business players, however, must
helpdesk services will be replaced by online services. submit requests for exemption based on orders from
The services can be accessed via email informasipp@ government agencies and non-governmental agencies
kemenkeu.go.id or through the Tax Court Secretariat’s related to the prevention of the spread of Corona virus.
official website www.setpp.kemenkeu.go.id. The request for exemptions must be attached with a
statement from the head of the government agency stating
Despite its two-day implementation, the circular
promulgated on 16 March 2020 has been revised based that the ethyl alcohol is only used for the prevention
and control of COVID-19. Additionally, in the event that
on the evaluation results of the ongoing implementation
of the tax court service policy. The Chairperson of the Tax the request for exemptions is based on an order from a
non-governmental organization, the documents must
Court revises these provisions in the Chairperson of the
Tax Court Circular Number SE-02/PP/2020 concerning be attached with a letter of recommendation from the
government agency that handles disaster management.