PT Perusahaan Gas Negara Tbk (PGAS) is ready to pay tax arrears to the Directorate General of Taxes or the Tax Office with an installment or installment scheme.

The company also ensures that operations are still running well thanks to the available loan facilities.

In the information disclosure report, PGN Corporate Secretary Rachmat Hutama said that his party had received a copy of the Supreme Court's decision related to nine tax cases, which obliged the company to pay tax arrears of Rp3.06 trillion. The tax matters consist of five VAT cases on natural gas for the 2012 period, three issues related to VAT on natural gas in the 2013 period, and one point regarding other taxes for the 2012 period.

"The company is currently conducting an internal evaluation and review for a request for reconsideration to the Supreme Court. The company also applied to installment/installment payments after receiving a bill from the Tax Office, "said PGAS management in information disclosure on the Indonesia Stock Exchange, Wednesday (3/2).

According to PGAS management, tax cases that befall the company require a large enough cash flow to be fulfilled in installments. PGAS said the company also has sufficient standby loan facilities for operational activities.

To note, the tax dispute between PGAS and the Tax Office had made the gas company's shares plummet. On January 4, 2020, PGAS shares closed down 7 percent.

The dispute began in 2012 when there were different interpretations in understanding the tax provisions, namely PMK-252 / PMK.011 / 2012, regarding implementing the obligation to collect VAT on natural gas delivery.

In 2017, PGAS filed an objection to legal action. However, the Tax Office refused. A year later, PGAS filed an appeal through the Tax Court, and a year after the company's request was granted.

The court canceled the Tax Office's decision on 49 SKPKB or Underpayment Tax Assessment Letters. On the Tax Court decision, the Tax Office submitted a PK (Judicial Review) to the Supreme Court, and it was granted.