Court Rejects Separation of DGT from Finance Ministry
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Sagap Tua Ritonga (Petitioner) and legal counsel Jonathan Waeo Salisi at the ruling hearing on the separation of the Directorate-General of Taxation from the Ministry of Finance, Wednesday (1/31/2024). Photo by MKRI/Ifa.


JAKARTA (MKRI) — The Constitutional Court (MK) has decided to reject the entire petition by tax consultant Sangap Tua Ritonga. The ruling hearing for Decision No. 155/PUU-XXI/2023 took place on Wednesday, January 31, 2024.

The Petitioner challenged Article 5 paragraph (2), Article 6, and Article 15 of Law No. 39 of 2008 on the State Ministry as well as Article 6 paragraphs (1) and (2) letter a of Law No. 17 of 2003 on State Finances.

He alleged that the placement of the Directorate-General of Taxation (DGT) under the Ministry of Finance in Article 5 paragraph (2), Article 6, and Article 15 of the State Ministry Law and Article 6 paragraphs (1) and (2) letter a of the State Finance Law was unconstitutional. Therefore, he argued, there should be a ministry-level agency with the authority to collect taxes/state revenues that is separate from the Finance Ministry.

In its legal opinions, delivered by Constitutional Justice Daniel Yusmic P. Foekh, the Court argues that it is an open legal policy of the legislatures as stipulated in Article 17 paragraph (4) and Article 23A of the 1945 Constitution. It could be changed at any time according to the current needs or the development in government affairs, or through a legislative review. Not to mention, the establishment of a ministry and the provisions on taxes in legislation has indeed portray a working mechanism of checks and balances toward state power, in casu president institutionally by the House.

The Court argues that as long as the norm is not expressly in violation of the 1945 Constitution, nor does it exceed the authority of the legislatures, nor does it constitute abuse of authority—not to mention that it is the mandate of articles in the 1945 Constitution—there is no reason for the Court to annul it or to interpret Article 5 paragraph (2), Article 6, and Article 15 of Law No. 39 of 2008 as well as Article 6 paragraphs (1) and (2) letter a of Law No. 17 of 2003 as the Petitioner requested in the petitum.

“Therefore, the Petitioner’s argument that the placement of the DGT as a subordinate of or under the Ministry of Finance as stipulated in Article 5 paragraph (2), Article 6, and Article 15 of Law No. 39 of 2008 as well as Article 6 paragraphs (1) and (2) letter a of Law No. 17 of 2003 was unconstitutional, thus requiring a ministry-level agency with the authority to collect taxes/state revenues that is separate from the Finance Ministry was legally groundless,” Justice Foekh concluded.

Also read:

Court Asked to Separate DGT from Ministry of Finance

Tax Consultant Revises Petition on DGT’s Separation in State Ministry Law

Author       : Sri Pujianti
Editor        : Nur R.
PR            : Raisa Ayuditha
Translator  : Yuniar Widiastuti (NL)

Disclaimer: The original version of the news is in Indonesian. In case of any differences between the English and the Indonesian versions, the Indonesian version will prevail.


Wednesday, January 31, 2024 | 16:25 WIB 93