Expense Recognition Dispute: A Case of Coal Mining Companies in Indonesia

DOI

10.2991/aebmr.k.220304.036How to use a DOI?

Keywords

CCOW; Corporate Income Tax; Interpretation; Tax Dispute

Abstract

This study aims to identify the main causes of disputes in the expense recognition for Indonesia coal mining companies and provide recommendation on how to avoid the disputes in the future. We focus on coal mining companies which had Coal Contract of Work (CCOW/PKP2B) with the government of Indonesia. CCOW is the only way for a company to get coal mining permits in Indonesia. CCOW companies have been involved in disputes with the Directorate General of Taxation (DGT) for years. This study uses The Theory of Legal Interpretation and The Law Interpretation Concept in analysing the problems and offering solutions. This study used qualitative approach and thematic analysis in answering research questions. Based on interviews and analysis of legal documents, our result shows that the main cause of the expenses dispute problem is a different interpretation of Income Tax Law and tax clause in CCOW. Referring to the law interpretation concept, to clearly understand the rules and prevent disputes, coal mining companies and DGT need to see the tax law and CCOW systematically and historically. This study also recommends that coal mining companies can avoid expense recognition disputes by complying with the tax administration guidance and, if necessary, ask for a private ruling if there are questionable clauses.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Ari Budiyono
AU  - Yulianti
PY  - 2022
DA  - 2022/03/08
TI  - Expense Recognition Dispute: A Case of Coal Mining Companies in Indonesia
BT  - Proceedings of the 7th Sriwijaya Economics, Accounting, and Business Conference (SEABC 2021)
PB  - Atlantis Press
SP  - 273
EP  - 282
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220304.036
DO  - 10.2991/aebmr.k.220304.036
ID  - Budiyono2022
ER  -