Legal Uncertainty in Transfer Pricing Audits: Analysis of AUPB through a Study of Tax Court Decisions

Legal uncertainty in the examination transfer pricing remains a major challenge in the Indonesian tax system. Audits conducted without consistent standards and a substance-based approach often result in unilateral corrections from tax authorities, which results in a decline in taxpayer compliance and trust. This study aims to analyze whether audit practices transfer pricing has reflected the General Principles of Good Governance (AUPB), such as the principles of legal certainty, accuracy, professionalism, proportionality, and protection of rights. This study uses a normative juridical method with a qualitative approach through a study of four Tax Court decisions. The analysis results show that in many cases, corrections made by the Tax Authorities do not reflect a deep understanding of the characteristics of taxpayers' businesses or the principles of AUPB. Corrections made in a formalistic and unilateral manner tend to violate the principles of professionalism and proportionality, and ignore the protection of taxpayers' rights. Regulatory strengthening, auditor capacity building, and standardization of audit approaches are needed so that audit practices can be implemented effectively. transfer pricing can be monitored fairly, accountably, and in accordance with the principles of the rule of law.