Civil Legal Liability for Asset Transfers Undertaken to Avoid Tax Obligations

Abstract

Asset transfers conducted by taxpayers to avoid tax obligations constitute a practice that has the potential to cause losses to the state. Although such actions are often carried out in a manner that appears formally lawful, they may be categorized as an abuse of law when undertaken in bad faith. This study aims to examine the forms of civil legal liability arising from asset transfers conducted for the purpose of tax avoidance. The research employs a normative juridical method using statutory, conceptual, and case approaches. The data utilized consist of primary, secondary, and tertiary legal materials, which are analyzed qualitatively. The findings indicate that asset transfers motivated by the intention to evade tax payments may give rise to civil liability through the mechanism of unlawful acts pursuant to Article 1365 of the Indonesian Civil Code, as well as through actio pauliana as regulated under Article 1341 of the Indonesian Civil Code. The state, as a tax creditor, possesses legal standing to file claims for the annulment of transactions that adversely affect state tax revenues. Therefore, a synergistic relationship between tax law and civil law is necessary to ensure the effectiveness of law enforcement against tax avoidance practices carried out through asset transfers.