Demarcating Administrative Disputes and Transfer Pricing Fraud: A Corporate Mens Rea Reconstruction Model

Authors

  • Dani Roberto Simanjuntak Institut Bisnis dan Komunikasi Swadaya, Jakarta, Indonesia
  • Basyiruddin Nur Institut Bisnis dan Komunikasi Swadaya, Jakarta, Indonesia
  • Ahalik Ahalik Institut Bisnis dan Komunikasi Swadaya, Jakarta, Indonesia
  • Karsam Karsam Institut Bisnis dan Komunikasi Swadaya, Jakarta, Indonesia
  • Atik Budi Paryanti Institut Bisnis dan Komunikasi Swadaya, Jakarta, Indonesia
  • Solihin Solihin Institut Bisnis dan Komunikasi Swadaya, Jakarta, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i3.1116

Keywords:

Transfer Pricing Fraud, Corporate Mens Rea, PMK 172/2023, Ultimum Remedium, DEMPE Analysis, Comparative Tax Law

Abstract

This study addresses the legal uncertainty in distinguishing bona fide administrative disputes under the Arm’s Length Principle (ALP) from criminal tax fraud in transfer pricing practices in Indonesia. Utilizing a juridical-normative approach combined with comparative legal analysis, this paper evaluates four landmark judicial precedents (PT Astra International Tbk, PT Asian Agri Group, PT Adaro Indonesia, and PT Kaltim Prima Coal) against PMK 172/2023, OECD DEMPE standards, and international corporate criminal liability doctrines. The findings indicate that the boundary between administrative adjustments and criminal prosecution relies on substantiating economic substance and corporate intent (mens rea), rather than nominal tax correction thresholds. This paper contributes three conceptual frameworks: (1) the Four-Layer Transfer Pricing Fraud Test, (2) the Corporate Mens Rea Reconstruction Model, and (3) the Forensic Early Warning Framework. Grounded in utilitarian theory and the ultimum remedium principle, the study advocates for prioritizing restorative administrative sanctions to maximize state revenue recovery while safeguarding the national investment climate.

References

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Published

2026-08-31

How to Cite

Simanjuntak, D. R., Nur, B., Ahalik, A., Karsam, K., Paryanti, A. B., & Solihin, S. (2026). Demarcating Administrative Disputes and Transfer Pricing Fraud: A Corporate Mens Rea Reconstruction Model. Greenation International Journal of Economics and Accounting, 4(3), 941–948. https://doi.org/10.38035/gijea.v4i3.1116

Issue

Vol. 4 No. 3 (2026): Greenation International Journal of Economics and Accounting (July - August 2026)

Section

Articles

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Copyright (c) 2026 Dani Simanjuntak, Basyiruddin Nur, Ahalik Ahalik, Karsam Karsam, Atik Budi Paryanti, Solihin Solihin

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