Tax Dispute arises between a taxpayer or tax bearer and an authorized official as a result of a decision which can be appealed or sued to the tax court based on taxation laws and regulations, including a lawsuit on the implementation of collection based on the Tax Collection Law by means of a forced letter, this definition is explained in article 1 point 5 of Law Number 14 of 2002 concerning the Tax Court. This law was passed on April 12, 2002 in Jakarta by the then President of the Republic of Indonesia, Megawati Soekarnoputri.

Tax Disputes can be in the form of differences in calculations or payments. In addition, the prevailing regulations or legal products tend to be confusing because they overlap one another which can lead to different interpretations. There are several ways to prevent tax disputes from arising.

Tax regulations are very diverse and interrelated with one another. It also tends to change according to situations and conditions. Socialization by tax officials to taxpayers must be carried out continuously in order for taxpayers to understand the latest information and minimize misunderstandings in the future.

Apart from taxpayers, employees who handle taxes must also be nurtured on an ongoing basis. Human resource ability to capture information can also affect how many errors occur. Regular training for employees will enable tax officers to issue regulations or legal products that are appropriate to circumstances, not overlapping between one regulation and another. Because confusing rules can increase the possibility of errors that occur.

Involving an experienced tax consultant to report and calculate tax might minimize errors. Tax consultant can help taxpayers understand the various laws and regulations accordingly. Tax consultants can also plan and assist tax dispute resolution.

Tax disputes are very prone to occur, especially when the government issues several new policies related to taxation. Of course, the possibility of eliminating tax disputes cannot be done. Although it is impossible to eliminate it, the emergence of tax disputes can be minimized in various ways.