Examining the Factors That Affect the Loss of Tax Disputes in the Tax Court

Abstract

Objective - The high tax administration loss rate sparked various speculations in Society. This study aims to determine the factors that led to the defeat of the tax administration in the Indonesian Tax Court. Methodology/Technique – Simple random sampling is used to obtain 1,000 samples of decisions on appeal disputes which is three times the minimum sample size. The logit model is used to find out whether the independent variable affects the dependent variable. The linear probability model is also used to test whether the Logit Model is robust. Findings - The estimation of results shows that the interaction between the tax dispute resolution period and the type of tax, as well as the number of representatives of the tax authorities, had a positive and significant impact on the loss of the tax administration in the prosecution. Novelty - No economic study has comprehensively analyzed the determinants of administrative defeat in the Indonesian Tax Court. This study uses data that have not been used in previous studies. The information includes evidence at audits/objections and appeals, types of taxes, tax dispute resolution periods, interactions between dispute resolution periods and evidence at audits/objections and requests, interactions between dispute resolution periods and types of taxes, interactions between periods dispute resolution, types of taxes and evidence at examination/objection and appeal, initial value, gender of judges, representatives of taxpayers and representatives of tax authorities in court. Type of Paper: Empirical JEL Classification: G18, K41 Keywords: Tax dispute; appeal decision; influencing factors; Tax Authorities defeat; Tax Court Reference to this paper should be referred to as follows: Sari, M.N; Qibthiyyah, R.M. (2022). Examining the Factors That Affect the Loss of Tax Disputes in the Tax Court, Acc. Fin. Review, 7(2), 97 – 112. https://doi.org/10.35609/afr.2022.7.2(3)