JAKARTA (TheInsiderStories) - Indonesia is undertaking necessary steps which are required in order to implement the Automatic Exchange of Information system, Finance Mininster Sri Mulyani Indrawati said. Indonesia will join 100 other countries that have taken part in the Automatic Exchange of Information.
She said with the application of the system, there will be limited room for tax payers to avoid tax in one country.
“As we know, it is a global policy agreed by more than 100 countries to exchange information, in particular in areas of tax. Therefore, there is limited possibility for tax payers to avoid tax in certain country,” Sri Mulyani said at the State Palace Wednesday (Feb. 22). n, Jakarta, Rabu (22/2) sore.
To implement the requirements, the Finance Minister is still studying the mechanism which agency or government body that will be given mandate to exchange information. It could be the Taxation Office or Finance Services Authority.
The difficult issue is that the existing banking, syariah bank and capital market laws assures secrecy of customers data.
Therefore, the Finance Ministry may take certain efforts to include an article on General Tax Requirement to ensure that the access to tax information will be strengthened, therefore the government meets the requirement to implement the automatic exchange of information.
The scheme will make it difficult for business players and investors to avoid tax or hide their assets abroad, as Indonesia could get the access from other countries that have joined the automatic exchange of information system.
“For instance, if someone opens an account in overseas bank, for instance in ASEAN, Europe or US, there will be no secrecy of data,” she said. (*)