Teguh Juniarto

Jakarta - Indonesia

TAX AMNESTY POLICY IN

DEALING WITH AUTOMATIC
EXCHANGE OF INFORMATION IN
THE YEAR 2018
With a case study: Indonesian Government Policy

APRIL 26, 2016

In globalization era (the era of integrated and openness), the economic order will
more and more liquid, which means when there is a change in one region will affect
other distinguished to other regions in particular
 TAX AMNESTY POLICY IN DEALING WITH AUTOMATIC
EXCHANGE OF INFORMATION IN THE YEAR 2018

TAX AMNESTY POLICY IN DEALING WITH AUTOMATIC EXCHANGE OF

INFORMATION IN THE YEAR 2018

With a case study: Indonesian Government Policy

Presented by: Teguh Juniarto

PRELIMINARY

In the case of Indonesian state that is discussing the implementation of legislation to

"Tax Amnesty". Meanwhile, If the tax amnesty could be realized, then they (such as
Singapore and tax haven countries) would have difficulty. According to experts of these
countries will be bankrupt. But on the other hand, Indonesia seeks to boldly carry out
tax amnesty to boost economic growth.

DISCUSSION
This is caused by a lack of revenue from the tax sector to encourage the Indonesian
government will impose a policy plan for the remission of taxes (Tax Amnesty) for
criminal suspects taxes. The policy would be counterproductive because the assessed
tax amnesty will also be extended to corruption.

Meanwhile, if the application of the remission of tax (tax amnesty) is delayed, potentially
lowering the government's credibility. Other impacts, the trust of taxpayers decreases
and there is a negative assessment of the state of threatened sucked liquidity.

Nevertheless, tax forgiveness should still be designed carefully. "Expanded access to
banking data, integration NIK (national identification number) and TIN (taxpayer
identification number), improved coordination and integration of administrative
systems, as well as the consistency of law enforcement is the domain that must be dealt
seriously.

In fact, the government's move is an opportunity to offer forgiveness prior disclosure
becomes a means of effective data reconciliation to the new tax system through tax
amnesty. Therefore, Indonesia is not yet ready to implement tax collection practices that
ideal. "We also understand the limitations and the press that often narrow the rule of
law."

Tax amnesty that accompanied the repatriation of funds believed to be able to raise the
national economy and create new investment, the creation of new jobs, and financing
various programs. Moreover, the implementation of the Base Erosion and Profit Shifting

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 TAX AMNESTY POLICY IN DEALING WITH AUTOMATIC
EXCHANGE OF INFORMATION IN THE YEAR 2018

(BEPS) Action Plan that contains an automatic information exchange (Automatic

Exchange of Information) related disclosure of banking information entered into force
in 2018. "If compressed, we headed for an era in which the taxpayer will be increasingly
difficult to find a nest hiding taxes are not paid.

It should be understood that, for the remission of tax policy is reasonable enforced
because a great asset stored abroad. Based on data from Tax Justice Network (2010),
there were US $ 331 billion or equivalent to Rp 4,500 trillion in assets Indonesian people
stationed in the country of asylum tax (tax haven). Global Financial Integrity (2013) puts
Indonesia as the country ranked 7th which have illicit funds abroad with the flow of
funds of Rp 200 trillion a year.

CONCLUSION
"when" Indonesia could interchangeable realize tax amnesty, (Based on the assumption
approximate in one year budget) then presumably the Additional Foreign Exchange of
Rp. 500 T. While the Draft Budget 2016: For Budget of +/- Rp. 2000 T and the State
Revenue amounted to +/- Rp. 1725. Budget Deficit of +/- Rp. 275 T. Thus (when
considered investment funds entrant) would Balanced Budget Surplus +/- Rp. 225 T.

Therefore, this impact is huge. Based on the basic analysis is (intensively

assumed as much as possible) as follows:

1). Assumed that Rupiah could be approached equivalent with 1 dollar.

2). Assumed When for the Balance of the Budget (based on the expenditure of
Taxpayers), will be shared, per person might get close to Rp. 1 million.
3). The impact, the deposit interest rate might be close to zero.
4). The impact of foreign investment is uninviting.
5). The development of the formal sector in particular of the informal will grow
significantly as a result that people are better investment than put in the bank.
5). The price level should be down drastically that level of production more efficient.
6). Consequently, the income level in a pro rata basis will also go down.
7). And others.

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 TAX AMNESTY POLICY IN DEALING WITH AUTOMATIC
EXCHANGE OF INFORMATION IN THE YEAR 2018

QUESTION

1) If so could it (Tax Amnesty) happen or be realized?

2) Where possible, what positive and negative impacts that will occur (in
implementation of Tax Amnesty)?

Meanwhile, in globalization era (the era of integrated and openness), the economic order
will more and more liquid, which means when there is a change in one region will affect
other distinguished to other regions in particular. as a consequence should be existence
of policy that is integrated through coordination and collaboration continuously and
intensively for the creation of balance and stability in the welfare of all human life
around the world. >>>>

SUGGESTION
The Indonesian Government must be wise in the implementing rules and regulations
regarding to Tax Amnesty. In this case a lot of factors to consider positive and negative
impacts, both internally and externally.

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