KPC legal action against tax office rejected

The South Jakarta District Court on Tuesday turned down a pretrial petition filed by coal firm PT Kaltim Prima Coal (KPC) against an investigation conducted by the tax office, citing an incorrect substantial reference.

The court, headed by Judge Prasetyo Ibnu Asmara, said the alleged procedural violations made by the tax office in investigating KPC are not part of the substance of a pretrial petition, as stipulated by Article 77 of the Criminal Code.

KPC said the tax office had violated procedures when investigating the firm for alleged tax evasion, as the tax office was in the middle of questioning KPC employees after the firm claimed a tax refund.

The firm said the tax office was supposed to stop the questioning first before moving to another investigation.

"This is a long process. We will see what legal moves we can do," said KPC lawyer Aji Wijaya in response to the court's decision.

KPC is unit of IDX-listed mining house Bumi Resources Tbk.(*)