The Existence of State-Owned Enterprises and Law Enforcement Issues in the Settlement of Tax Debts

Abstract

This study focuses on the legal aspects concerning the nature of State-Owned Enterprises (Badan Usaha Milik Negara/SOE) as government legal entities, as well as the enforcement of tax law in relation to the settlement of SOE tax debts, which frequently encounters obstacles due to inconsistencies in the regulatory framework governing SOE legal entities. The study examines the legal processes involved in tax collection measures in accordance with applicable statutory regulations. This research employs a normative juridical method based primarily on primary legal sources. The findings indicate that the statutory regulations governing SOE appear discriminatory and seem to grant certain privileges. In fact, the original purpose of establishing SOE was not only to contribute to public welfare but also to generate profits so that they could provide contributions to the state in the form of dividends. On the other hand, the settlement of tax debts should be managed prudently in accordance with tax law in order to ensure legal equality with private legal entities in fulfilling their tax obligations as stipulated by law.