The Urgency for the Implementation of Transition Norm 'Lex Favor Reo' in the Imposition of Tax Sanction in Indonesia

• Author: Arifin Halim, Sudarsono, Tunggul Anshari Setia Negara & Heru Ratno Hadi
• Position: Brawijaya University, Faculty of Law, Malang, INDONESIA
• Pages: 153-165

Center for Open Access in Science  https://www.centerprode.com/ojls. html

Open Journal for Legal Studies, 2020, 3(2), 153-166.

ISSN (Online) 2620-0619  https://doi.org/10.32591/coas.ojls.0302.07153h

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© Authors. Terms and conditions of Creative Commons Attribution 4.0 International (CC BY 4.0) apply.

Correspondence: Arifim Halim (PhD student), Brawijaya University, Faculty of Law, Malang,

INDONESIA. E-mail: arifin.fhub@yahoo.com.

The Urgency for the Implementation of

Transition Norm “Lex Favor Reo” in

the Imposition of Tax Sanction in Indonesia

Arifin Halim, Sudarsono, Tunggul Anshari Setia Negara & Heru Ratno Hadi

Brawijaya University, Faculty of Law, Malang, INDONESIA

Received: 9 October 2020  Accepted: 18 December 2020  Published Onli ne: 30 December 2020

Abstract

Taxation regulations in Indonesia are very dynamic, due to frequent changes in tax laws and

regulations. Taxpayers need to make extra efforts to keep abreast of the latest tax regulations. This

can cause taxpayers to experience difficulties in carrying out their tax obligations. On the other

hand, Indonesia adheres to the principle of legal fiction , so that for every statutory regulation that

has been promulgated, the public is dee med to have known the law and un derstands it, so that

there is no excuse for the violations to the law. Problem may arise when the tax authorities conduct

tax audits on taxpayers and find the taxpayers do not carry out tax obligations in accordance with

the taxation provisions in effect at the time the transaction happens, so that the tax authorities will

impose tax sanctions on taxpayers in accordance with the tax regulations in force at the time when

the transactions happen, not based on the latest tax regulations, which are in effect when the

taxpayer’s error is discovered by the tax authorities. The imposition of these sanctions raises a

problem: has the imposition of tax sanctions provided justice and legal certainty? How is the

imposition of tax sanctions that provide justice and legal certainty? Le gal certainty is one of the

main factors for investors in deciding which countries to invest in. Therefore, in our opinion, a

“new model for the imposition of tax sanct ions” is needed in Indonesia, namely by applying th e

Lex Favor Reo Transitoir (transition) principle in the imposition of tax sanctions. This research is

significant to conduct, so that the imposition of tax sanctions provides better ju stice and legal

service. The application of the “new model of imposition of tax sanctions” also has urgency, so that

the imposition of tax sanctions for taxpayers provides a sense of justice and legal certainty which

in turn can attract investors to invest in Indonesia as well as to avoid capital flight. This condition

will make Indonesian economy grow rapidly and, in the end, will increase state revenue from taxes.

Keywords: tax sanction, new model, legal certainty, legal justice.

1. Introduction

In Indonesia, tax regulations are very dynamic and change very rapidly. There are

times when changes come and go. This certainly makes taxpayers need extra energy to keep

abreast with the latest tax regulations. During the Covid-19 pandemic, the government issued so

many tax regulations to provide tax and other incentives. For the most recent amendments, on 5

October 2020 the House of Representatives has completely ratified the Job Creation Act /

Omnibus Law Bill into Law, but it has not been promulgated by the government to date. In the

Omnibus Law which was recently passed by the House of Representatives, it also regulates