Indonesia vs PT Tech Data Advanced Solutions Indonesia, November 2021, Supreme Court, Case No. 2747/B/PK/Pjk/2021

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Category: Disallowed Deduction, Services and Fees | Tag: , ,
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PT Tech Data Advanced Solutions Indonesia (formerly PT AVnet Datamation Solutions) had paid service fees to a related party in FY 2013.

Following an audit, the tax authorities issued an assessment where these service fees, among other issues, was found to be unsubstantiated by the evidence provided by the company.

The Company disagreed and brought the case to court.

Judgement of the Supreme Court

The Supreme Court upheld the decision of the Tax authorities.

Excerpts.
“That the reasons for the Appellant’s request for reconsideration cannot be justified, because the decision of the Tax Court which partially granted the Appellant’s appeal against the Appellant’s Decision Number KEP-01458/KEB/WPJ.07/2017, dated 5 September 2017, concerning Taxpayer’s Objection to the Tax Assessment Letter for Underpayment of Income Tax for the Tax Year 2013, Number 00005/206/13/056/16, dated 8 June 2016, in the name of the Appellant, NPWP 21.120.445.8- 056.000, so that the calculation of Income Tax for the Tax Year 2013 to be paid is Rp 1,158,316,875.00, is correct and does not conflict with the applicable laws and regulations…”

“e. That the existence and economic benefits did not exist in the amount of Rp28,810,546,108.00. The Appellant only provided evidence of service agreements, Transfer Pricing Documents and payments, but the Appellant did not provide evidence that the services received had actually been provided. As it is not proven that services were rendered and received by the Appellant, the Appellant’s correction of Rp28,810,546,108.00 is maintained;”

 
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Indonesia vs PT AVnet Datamation Solutions, November 2021, Supreme Court2747

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