THE ROLE OF PROSECUTORS IN SETTLEMENT OF CORPORATE TAX CRIMINAL PROSECUTION THROUGH FINE PEACE BASED ON THE PRINCIPLE OF DOMINUS LITIS

Abstract

This study aims to analyze the role of the Prosecutor as dominus litis in resolving corporate tax crimes through the mechanism of settlement fines (denda damai). The background of this research is based on the increasing number of corporate tax offenses, which has resulted in state revenue losses and potential disruptions to economic stability. On the other hand, the Indonesian legal system emphasizes the principle of ultimum remedium, whereby criminal prosecution is not the primary objective; instead, the restoration of state financial losses through more effective administrative mechanisms is prioritized. This study employs a normative juridical research method using statutory approaches, case studies, doctrinal analysis, and academic literature review. The findings indicate that Prosecutors possess strategic authority based on the dominus litis principle to terminate investigations and resolve tax crime cases through settlement fines as regulated in Article 44B of the Law on Harmonization of Tax Regulations (UU HPP) and Article 35 letter K of the Law on the Prosecutor’s Office. This mechanism is considered more effective in restoring state losses, maintaining corporate continuity, and protecting the public interest. The study highlights the importance of clear guidelines for the implementation of settlement fines to prevent abuse of authority and to ensure legal certainty in the enforcement of tax crimes