Tax Treaty Abuse After CFC Rules In Indonesia (Literature Cases)

In the proposal for a Council Directive on a Common Consolidated Corporate Tax Base (CCCTB) there have been introduced a specific anti-abuse provisions, CFC rules. These rules are aimed at tax evasions and tax avoidance. The basic principle is the protection of the tax base against erosion through practices of artificial income shifting. Generally, CFC rules prevent tax avoidance in a state of a shareholder by denying the deferred taxation of profits generated by its controlled company, which is a resident in a tax preference jurisdiction. Even thought the CCCTB directive would be aided easier and low-costs cross-border business as well as it would be restricted the harmful tax competition there are questions whether it is advisable to introduce these rules into such system of the CCCTB, whether these rules are compatible with the CCCTB and whether it is regulated properly. So, the focus of this paper rests on the interaction of the proposed CCCTB directive with existing CFC rules in the European Union. The paper deals with pros and cons, economic and legal perspectives these rules in the context of the proposed CCCTB directive.

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ANALISIS PENERAPAN CONTROLLED FOREIGN COMPANY RULES DALAM MENGATASI BASE EROSION AND PROFIT SHIFTING DI INDONESIA

INFO ARTHA ◽

10.31092/jia.v3i0.53 ◽

2017 ◽

Vol 3 ◽

pp. 1-14

Author(s):

Alfa Mightyn ◽

Arifah Fibri Andriani

Keyword(s):

Action Plan ◽

Tax Avoidance ◽

Building Blocks ◽

The Other ◽

Foreign Company ◽

Tax Revenue ◽

Profit Shifting ◽

The World ◽

Domestic Law ◽

Cfc Rules

One cause for the inability to achieve the expected tax revenue target for some last years was the practice of tax avoidance. One form of tax avoidance is the utilization of Controlled Foreign Company (CFC) to defer the recognition of income from overseas over WPDN capital to be taxed in the country. This practice is also faced by many other countries in the world. The issue of the Base Erosion and Profit Shifting (BEPS) has been of concern to developed and developing countries. G20 countries cooperate with OECD to form a BEPS Project to formulate measures to address these BEPS. Indonesia as one of the Associate Members of the Project BEPS has a position that is parallel to the other OECD countries and participates in implementing the BEPS results. BEPS Project has resulted in BEPS Action Plans which one of them is Action 3: Strengthening CFC Rules. Action 3 will provide recommendations to the domestic law related to the design of CFC Rules. Until now, related to Action 3, BEPS Project has issued a Public Discussion Draft Action 3: Strengthening CFC Rules. This draft is divided into seven "building blocks" required for CFC Rules to be effective. The aim of this study is to analyze the effectiveness of CFC Rules in Indonesia, whether it is sufficient to prevent BEPS. After that, we can determine what steps should be taken by Indonesian tax authorities to strengthen the CFC Rules in Indonesia based on seven dimensions of building blocks. The conclusions of this study are (1) CFC Rules in Indonesia as a whole have not been able to overcome BEPS; and (2) When compared with the recommendations of the Discussion Draft Action Plan 3, CFC Rules Indonesia needs to be improved. However, the necessary improvements should be adjusted to match the needs and characteristics of Indonesia.

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Discriminatory tax treatment of CFC’s losses towards losses of partnerships, economic double taxation, exchange of tax information and future developments of the Norwegian CFC rules

Skatterett ◽

10.18261/issn1504-310x-2014-04-04 ◽

2014 ◽

Vol 33 (04) ◽

pp. 349-384

Author(s):

Błażej Kuźniacki

Keyword(s):

Double Taxation ◽

Future Developments ◽

Cfc Rules

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PERKEMBANGAN CONTROL FOREIGN CORPORATION (CFC ) RULES DI INDONESIA DALAM UPAYA MENGAMANKAN PENERIMAAN NEGARA DARI SEKTOR PAJAK

Jurnal Vokasi Indonesia ◽

10.7454/jvi.v5i2.75 ◽

2017 ◽

Vol 5 (2) ◽

Author(s):

Ning Rahayu

Keyword(s):

Tax Haven ◽

Foreign Corporation ◽

Cfc Rules

Globalisasi ekonomi telah memberikan dampak semakin meningkatnya transaksi internasional yang dilakukan oleh perusahaan-perusahaan multinasional . Dalam upaya mencapai laba yang optimal, perusahaanp perusahaan multinational tersebut melakukan berbagai upaya efisiensi, baik yang yang dilakukan dengan cara-cara yang legal maupun yang illegal. Upaya tersebut adalah melakukan penghindaran pajak internasional. Salah satu bentuk penghindaran pajak yang dilakukan adalah melalui skema Control Foreign Corporation (CFC), yaitu upaya penghindaran pajak yang dilakukan dengan cara menunda pengakuan penghasilan dari modal yang bersumber dari luar negeri (khususnya di negara tax haven) untuk dikenakan pajak di dalam negeri. Praktik penghindaran pajak dengan skema ini dapat menggerus penerimaan negara dari sektor pajak. Bagi negara Indonesia yang menjadikan penerimaan pajak sebagai primadona penerimaan negara, hal ini merupakan acaman yang serius. Oleh karena itu untuk menangkal praktik penghindaran pajak ini negara Indonesia membuat CFC Rules. CFC Rules di Indonesia sudah beberapa kali diperbaharui dalam upaya menutup peluang-peluang penghindaran pajak tersebut sekaligus untuk mengamankan penerimaan negara dari sektor pajak.Kata kunci: penghindaran pajak, Control Foreign Corporation (CFC), CFC Rules

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As Regras Brasileiras de Tributação de Controladas e Coligadas no Exterior: verdadeiras Controlled Foreign Company (CFC) Rules?

Revista de Direito Internacional ◽

10.5102/rdi.v14i2.4588 ◽

2017 ◽

Vol 14 (2) ◽

Author(s):

Melina De Souza Rocha Lukic ◽

Amanda Almeida Muniz

Keyword(s):

Foreign Company ◽

Para Determinar ◽

Cfc Rules

Este artigo pretende analisar se as regras criadas até então no Brasil para tributação de controladas e coligadas no exterior seguem o modelo das Controlled Foreign Company (CFC) Rules adotado em outros países. A metodologia utilizada foi a análise da legislação nacional e internacional bem como pesquisa bibliográfica e análise comparativa. Após o exame da estrutura das regras CFC criadas em outros países, definimos o modelo internacional e comparamos as normas brasileiras a este modelo. As regras do país não adotam os critérios que utilizam a maioria das CFC rules – localização da investida e natureza das rendas – para determinar a possibilidade de tributação, mas somente para diferenciar a forma pela qual se dá a tributação. Desta forma, pode-se concluir que o Brasil não adota uma regra nos parâmetros das CFC Rules estrangeiras.

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