Page 4 - 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 4 of 8

The Terms of Service of The DGT and Tax Court

Temporary Suspension in Response to COVID-19

DSPPn refers to the list of valuation priority targets. The buildings and the costs incurred to build the taxpayer’s
DSPPn Drafting Team is segmented into two, namely own building are arm’s length and to determine the sales
DSPPn Drafting Team at the central level and the DSPPn value of land and building taxable object.
Drafting Team at the DGT Regional Office level.
Additionally, valuation on taxpayers, which was
Moreover, the DSPPn Drafting Team at the central previously based on job requirements, is now based on
level is set forth by the Director of Extensification and valuation order. The regulation has come into force as of
Valuation. The DSPPn Drafting Team at the DGT Regional its promulgation date on 27 February 2020.
Office level, however, is set forth by the Head of the DGT
The enactment of this regulation concurrently revokes
Regional Office. The DSPPn Drafting Team is responsible
Director General of Taxes Circular Number SE-61/
for analyzing taxation data and information to prepare
PJ/2015 concerning the Optimization of Valuation for
DSPPn.
Extracting Tax Potentials and Other Taxation Purposes
Further, this regulation stipulates that the valuation (SE-61/PJ/2015) and the provisions in subparagraph
is carried out by a valuation team consisting of one tax F points 3, 4, and 5 in Director General of Tax Circular
assessor as chairman and concurrently a member and a Number SE-54/PJ/2016 concerning the Technical
minimum of one member. Instructions for Property Valuation, Business Valuation,
and Intangible Assets Valuation for Taxation Purposes
The valuation may be carried out by a team or by one
(SE-54/PJ/2016).
appraiser in the event that the valuation is carried
out to test whether the transfer value of land and/or
Table 1 - Triggers for the Valuation on the Taxpayers’ Transactions and Data in the DGT’s Work Units

Work Units
Number
Tax office DGT Regional Office Directorate of Extensification
and Valuation

1 Based on Valuation Priority Targets Based on DSPPn resulting from analyses Based on DSPPn resulting from analyses
(Daftar Sasaran Prioritas Penilaian/ by the DSPPn Drafting Team at the by the DSPPn Drafting Team at the
DSPPn) resulting from analyses by the Central Level and/or the DSPPn Drafting Central Level.
DSPPn Drafting Team at the Central Team at the DGT Regional Office level.
Level and/or the DSPPn Drafting Team
at the DGT Regional Office level.
2 Based on the request for Tax Appraiser Based on the request for valuation Based on the request for valuation
assistance as an Expert in Audits. assistance from the Tax Office. assistance from the DGT Regional Office.

3 Based on the request for valuation Based on the request for Tax Appraiser Based on the request for Tax Appraiser
assistance from other Sections in the Tax assistance as an Expert in Audits. assistance as an Expert in Audits from
Office. the Director of Tax Audit and Collection.

4 Based on the request for valuation Based on the request for Tax Appraiser Based on the request for Tax Appraiser
assistance from (an)other Tax Office(s) assistance as an Expert in Preliminary assistance as an Expert in Preliminary
for material reviews. Investigation. Investigation from the Director of Law
Enforcement.
5 Based on the list of valuation objects Based on the request for Tax Appraiser Based on the request for Tax Appraiser
resulting from data analyses on the assistance as an Expert in Preliminary assistance as an expert in investigation
information system (risk engine). Investigation. from the Director of Law Enforcement.

6 Based on requests for valuation Based on requests for valuation
assistance from other divisions within assistance from other Echelon II Units
the DGT Regional Office. within the DGT Head Office.

7 Based on the list of valuation objects Based on the list of valuation objects
resulting from data analyses on the resulting from data analyses on the
information system (risk engine). information system (risk engine).

Source: Director General of Taxes Circular Number SE-05/PJ/2020