Fake Tax Invoice Cases: Prison and Multiplied Fines
Fake tax invoices lead to 2–6 years in prison and fines of 2–6 times the tax value. See real cases and how your business stays clear of the trap.
Unlike late filing, which only incurs an administrative fine, fake tax invoices—invoices issued or used without a real transaction—are a criminal offense in taxation. It is one of the cases most often investigated by the Directorate General of Taxes (DGT), and the penalties are severe.
The penalties
Under Article 39A of UU KUP, issuing or using a tax invoice not based on a real transaction is punishable by:
- 2 to 6 years in prison, and
- A fine of 2 to 6 times the amount of tax in that invoice.
So for a fake invoice carrying Rp10 billion in tax, the fine alone could reach Rp20–60 billion—on top of the prison term.
Lessons from real cases
- Semarang (2025). Three taxpayers (RH, KH, MM) were handed to prosecutors for allegedly issuing invoices without real transactions and filing false returns, with alleged state losses of over ten billion rupiah. RH and KH face up to 6 years in prison and a fine of 2–6 times the tax value.
- A Rp112 billion verdict. Two defendants in a tax-invoice fraud case were sentenced to 4 years in prison and fined Rp112 billion.
- Hundreds of billions in losses. The DGT arrested a fake-invoice suspect estimated to have caused state losses of up to Rp170 billion.
- A businessman jailed 3.5 years for issuing fake tax invoices.
These patterns show the DGT is increasingly aggressive, and the fines vastly exceed any short-term “gain” from bogus invoices.
Why even healthy businesses get caught
The risk isn’t always intentional. Buying an “invoice” from a third party to boost input tax credit, or accepting invoices from a supplier that turns out to be illegitimate, can drag your business into an audit—or even an investigation.
How to protect your business
- Ensure every input tax invoice comes from a transaction that genuinely occurred and is backed by documents.
- Verify the legitimacy of suppliers and invoices before crediting VAT.
- Keep transaction evidence (contracts, deliveries, payments) organized and digital.
- Avoid “tax reduction” offers via invoices from unclear parties.
Certified tax consultants help you stay compliant and avoid criminal risk. Learn about our consultation services or contact the Mandiri Pajak team.
Sources
- Fake Tax Invoice Scheme: 3 Face 6 Years’ Jail and Tens of Billions in Fines — Tribunnews
- 2 Defendants in Tax-Invoice Fraud Sentenced to 4 Years and Fined Rp112 Billion — Kompas.com
- Fake Tax Invoice Suspect Causing Rp170 Billion in State Losses Arrested — Detik.com
- Issuing Fake Tax Invoices, This Businessman Jailed 3.5 Years — CNBC Indonesia