Dispute Resolution in the Case of Production Sharing Contract vs Tax Treaty (Case Study of Government of Indonesia vs Oil and Gas Contractors in Branch Profit Tax Issue)
- DOI
- 10.2991/iceml-18.2018.26How to use a DOI?
- Keywords
- oil and gas contractors and disputes resolution
- Abstract
The dispute between Government of Indonesia and oil and gas contractors regarding branch profit tax rate has been the highlight of issues in the oil and gas industry since 2010, when BPK-RI (Indonesia’s Audit Board) released its audit findings on Central Government Financial Statements for year 2009. BPK-RI found that there is potential loss of state income due to application of tax treaty rate by several oil and gas contractors, which are lower than normal tax rate. It became recurring findings which has not been settled to date. From the two of BPK-RI recommendation, to collect the underpayment of tax and to amend the relating PSC contract, only first recommendation give positive results through lengthy litigation process in tax court. The effort to amend the PSC contract has not avail as the contractors reluctant to respond to the government requests. This paper will attempt to explore the cause of the dispute and to evaluate the available options for both parties to settle the long dispute by exploring the legal standing of both PSC and tax treaty including the tax court ruling from one of the finished case.
- Copyright
- © 2018, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Harry Budi Artono PY - 2018/09 DA - 2018/09 TI - Dispute Resolution in the Case of Production Sharing Contract vs Tax Treaty (Case Study of Government of Indonesia vs Oil and Gas Contractors in Branch Profit Tax Issue) BT - Proceedings of the 2018 International Conference on Energy and Mining Law (ICEML 2018) PB - Atlantis Press SP - 108 EP - 113 SN - 2352-5428 UR - https://doi.org/10.2991/iceml-18.2018.26 DO - 10.2991/iceml-18.2018.26 ID - Artono2018/09 ER -