A tax offence is a consequence of the acts that induces loss of
tax revenue for the state and the distortion of public order due to
the non-fulfillment or breach of the material or procedural
obligations stated in the law.
In the broad context, tax offences and penalties are set forth
in the Tax Procedure Code ("TPC") numbered 213. Tax
office may identify contradictions to the law when conducting an
examination or investigation. Administrative penalties should be
served to the party/parties through a service of process by the
relevant tax office once an examination or investigation report is
prepared on the subject.
Whom could be the subject of the penalties?
Penalties could be imposed either on real persons or legal
entities. Penalties that could not be collected from the assets of
the legal entity may be directed to the personal wealth of the
legal representatives of the entity who could be the managers of
the limited liability partnership (LLP) or board of
