scholarly journals THE IMPLEMENTATION OF AUTOMATIC EXCHANGE OF INFORMATION AS A TOOL TO TACKLE OFFSHORE TAX EVASION: AN EXPERIENCE FROM INDONESIA

Scientax ◽  
2020 ◽  
Vol 2 (1) ◽  
pp. 100-122
Author(s):  
Riska Marlinda Darmanti ◽  
Darmawan Mangkan
Keyword(s):  
Tax Evasion ◽  
Methodological Approach ◽  
Tax Compliance ◽  
Financial Information ◽  
International Taxation ◽  
Financial Assets ◽  
Net Worth ◽  
Exchange Of Information ◽  
Directorate General

Cross-border tax evasion has been a central issue in international taxation in recent years. The use of Offshore Financial Centres (OFCs) and low tax jurisdictions to facilitate the wealth of high net worth individuals has led to offshore tax evasion and has eroded the tax bases of countries. Meanwhile, international tax cooperation is emerging with the aim of enhancing tax transparency. One way to reach tax transparency is with the implementation of the exchange of information for tax purposes. The tax authorities have already implemented the exchange of information on request; however, this method is ineffective to fight against offshore tax evasion. The tax authorities must already obtain the evidence of their suspicion over the taxpayers; otherwise, their request may be denied as a ‘fishing expedition’. The demand for offshore financial information is obvious since it will enable tax authorities to oversee the level of offshore tax compliance. This study considers the importance of the Automatic Exchange of Information (AEOI) as a tool to access the resident’s financial information of residents who kept their financial assets in other jurisdictions with a case study in Indonesia. The financial information from other jurisdictions is fundamental for Indonesia because it can be used for analysis and law enforcement of taxpayers, especially those who previously saved money abroad and have not reported or paid the correct amount of tax. This paper recognizes that despite the benefits of the AEOI, the implementation of the AEOI in Indonesia is still facing challenges, although it has been two years since its first implementation. This study will follow a qualitative methodological approach with a detailed literature review and real experience in Indonesia. Finally, this article explores the current stage of implementing the AEOI in Indonesia and the challenges faced by Indonesia with some proposed solutions for the Directorate General of Taxes for the effective implementation of the AEOI in Indonesia.

scholarly journals AKIBAT ADANYA KETERBUKAAN INFORMASI PAJAK PASCA DIKELUARKANNYA PERPPU NOMOR 1 TAHUN 2017 TENTANG AKSES INFORMASI KEUANGAN UNTUK KEPENTINGAN PERPAJAKAN

2020 ◽  
Vol 13 (1) ◽  
pp. 12-21
Author(s):  
Belinda Carissa Santoso
Keyword(s):  
Government Regulation ◽  
Banking Sector ◽  
Tax Avoidance ◽  
Economic Cooperation ◽  
Financial Service ◽  
Financial Information ◽  
International Taxation ◽  
State Budget ◽  
Exchange Of Information ◽  
Directorate General

The tax avoidance activity that is most often carried out by individual taxpayers is to flee their savings to other countries. The practice of escaping funds out of the country is not a new matter in the world of international taxation, so many countries are trying to find the way to prevent this. Automatic Exchange of Information is a plan from GZO countries and was initiated by the Organization for Economic Cooperation and Development regarding a system which supports the exchange of taxpayer accounts information between countries. With this system, taxpayers who have opened account in other country will be able to be tracked directly by the tax authorities of their home country. Indonesia as one of the countries that have agreed on AEoI, issues a Government Regulation in Lieu of Law Number 1 Year 2017 regarding Access to Financial Information for Tax Purposes. Government Regulation in Lieu of Law Number 1 Year 2017 gives authority to the Directorate General of Taxes to obtain access to the financial information for tax purposes from financial service institutions that carry out activities in the banking sector, capital market, insurance, other financial service institutions, and/or other entities categorized as financial institutions in the field of taxation. Basically the purpose of this authorization is for DGT (Directorate General of Taxes) to strengthen taxation database to meet the needs of tax revenues so that the state budget can be fulfilled well every year, and to eradicate world tax criminals. With this PERPPU (Government Regulation in Lieu of Law Number 1 Year 2017), it doesn't rule out the possibility of leakage of domestic customers‘ financial information that can cause various kinds of risk such as buying and selling customers’ data, the desire to save by domestic taxpayers is deacreasing due to the fear and discomfort as if the taxpayers' financial condition is stripped naked in their own country, so their trust in financial service institutions is reduced and people prefer to save their money in cash or invest it in the form of land or building. Kegiatan penghindaran diri dari membayar pajak yang paling sering dilakukan oleh wajib pajak individu adalah dengan melarikan uang tabungannya ke negara lain. Praktik melarikan dana keluar negeri bukanlah hal baru di dunia perpajakan internasional sehingga banyak negara yang berusaha mencari cara untuk mencegah hal tersebut. Automatic Exchange Of Information adalah sebuah rencana dari negara G20 yang diinisiasi oleh Organisation for Economic Cooperation and Development mengenai sistem yang mendukung pertukaran informasi keuangan wajib pajak antar negara. Dengan sistem ini, wajib pajak yang memiliki rekening di negara lain bisa dilacak secara langsung oleh otoritas pajak negara asalnya. Indonesia sebagai salah satu negara yang menyepakati AEoI, mengeluarkan Peraturan Pemerintah Pengganti Undang-Undang Nomor 1 Tahun 2017 tentang Akses Informasi Keuangan Untuk Kepentingan Perpajakan. PERPPU 1 Tahun 2017 ini memberikan kewenangan kepada Direktorat Jenderal Pajak untuk memperoleh akses informasi keuangan untuk kepentingan perpajakan dari lembaga jasa keuangan yang melaksanakan kegiatan di sektor perbankan, perasuransian, pasar modal, lembaga jasa keuangan lainnya, dan/atau entitas lain yang termasuk sebagai lembaga keuangan di bidang perpajakan. Pada dasarnya maksud dari pemberian wewenang ini agar DJP dapat menguatkan basis data perpajakan untuk memenuhi kebutuhan penerimaan pajak sehingga anggaran negara dapat terpenuhi dengan baik setiap tahunnya, serta untuk memberantas penjahat-penjahat pajak dunia. Dengan adanya PERPPU ini tidak menutup kemungkinan terjadinya kebocoran data informasi keuangan nasabah dalam negeri yang dapat menimbulkan berbagai macam resiko seperti terjadinya jual beli data nasabah, keinginan menabung wajib pajak dalam negeri semakin berkurang karena munculnya rasa takut dan tidak nyaman seolah-olah kondisi keuangan wajib pajak ditelanjangi di negara sendiri, sehingga kepercayaan terhadap lembaga jasa keuangan menjadi berkurang dan masyarakat lebih memilih menyimpan dananya dalam bentuk tunai atau investasi berupa tanah atau bangunan.

The new player in international taxation: the automatic exchange of financial information

2021 ◽  
Vol 23 (3) ◽  
pp. 41-45
Author(s):  
ESTER GARCÍA ◽  
Keyword(s):  
Information Exchange ◽  
Legal Framework ◽  
Financial Information ◽  
International Taxation ◽  
Positive Outcomes ◽  
Exchange Of Information ◽  
Bank Secrecy ◽  
Bank Accounts

The article highlights the progress of international taxation in the fight against the concealment of income in offshore jurisdictions and exposes the lights and shadows of the current legal framework for the exchange of information on bank accounts. The author examines the major problems of international taxation and how corporations avoid paying taxes in their jurisdictions and how it affects the financial sphere. The article studies bank secrecy with its harmful aspects and develops the solution to resolve the current issues. As a conclusion, the author focuses on cooperation between tax administrations and the positive outcomes from transparency and information exchange measures on the international taxation.

scholarly journals Improvement of tax control in Ukraine on the basis of implementing BEPS plan tools and automatic information exchange

2020 ◽  
Vol 2020 (3) ◽  
pp. 79-94
Author(s):  
Liudmyla OLEYNIKOVA ◽  
◽  
Inna DOLZHENKO ◽  
Keyword(s):  
Comparative Analysis ◽  
Tax Evasion ◽  
Information Exchange ◽  
Analytical Data ◽  
Financial Information ◽  
Exchange System ◽  
Systematic Analysis ◽  
Cross Border ◽  
Exchange Of Information ◽  
Base Analysis

The article is devoted to substantiating the need to develop and strengthening the competencies and capabilities of tax services to identify and stop tax evasion in the global economic space characterized by the use of aggressive tax planning schemes related to the taxation of cross-border companies. The aim of the article is to determine the procedures and consequences of the introduction in Ukraine of the standard of automatic exchange of information for tax purposes, the advantages of which are its potential to curb significant tax evasion offshore. Research methods: methods used in this research goes as following: comparative analysis, systematic analysis, cognitive-analytical, data base analysis etc. It is established that the exchange of information between the tax authorities of different countries is the most important among the international instruments to combat cross-border tax evasion schemes, and the main international tool for cooperation in overcoming the asymmetry of tax information is the introduction of a standard for automatic exchange of information for tax purposes. Emphasis is placed on the parameters set by the CRS standard for the identification and exchange of information and the steps that need to be taken to implement it in Ukraine. Research methods: methods used in this research goes as following: comparative analysis, systematic analysis, cognitive-analytical, data base analysis etc. Author arrives at the conclusion that the dates of establishment of the automatic taxation and financial information exchange system in Ukraine (in accordance with CRS standards) are not being followed sufficiently. In this paper author discusses the importance of systematic and methodological establishment of the automatic taxation and financial information exchange system in Ukraine (in accordance with CRS standards) as well as suggests the methods that would efficiently speed up the process of law enforcement project development in Ukraine as well as other normative acts.

scholarly journals Pengaruh Persepsi Wajib Pajak atas Penerapan E-Filing dan Persepsi Wajib Pajak atas Kualitas Sistem E-Filing Terhadap Kepatuhan Pajak

2019 ◽  
Vol 3 (1) ◽  
pp. 208-216
Author(s):  
Anisa Widya Larasati ◽  
Dyah Probowulan ◽  
Achmad Syahfrudin
Keyword(s):  
Real Time ◽  
Quantitative Methods ◽  
Annual Report ◽  
Tax Compliance ◽  
Primary Data ◽  
System Quality ◽  
Filing System ◽  
Directorate General

E-Filing is a system for the achievement of annual report letters (SPT) which is done online and in real time to the Directorate General of Taxes through the official website of the Directorate General of Taxes. This study aims to examine the effect of perceptions of taxpayers on the application of E-filing and perceptions of taxpayers on the quality of e-filing systems for tax compliance in the Jember Pratama KPP case study. This research uses quantitative methods. The number of samples used is 100 taxpayers who use the e-Filing system. The data used in this study are primary data in the form of questionnaires distributed to taxpayer respondents. The results in this study indicate that taxpayer perceptions affect tax compliance and the quality of the e-Filing system has no effect on tax compliance. Keywords: E-Filling, Perception, E-Filing System Quality, Complaints

scholarly journals Conclusions

2021 ◽  
pp. 311-330
Author(s):  
Brigitte Unger ◽  
Lucia Rossel ◽  
Joras Ferwerda
Keyword(s):  
Money Laundering ◽  
Tax Evasion ◽  
Paradigm Shift ◽  
Tax Avoidance ◽  
Ecosystem Approach ◽  
International Taxation ◽  
Corporate Tax ◽  
Exchange Of Information ◽  
International Regulations ◽  
Policy Measures

This chapter presents the conclusions of the book in the light of the ecosystem approach. The chapter shows that there is a paradigm shift in the international taxation regime. Also, although international regulations such as Automatic Exchange of Information show some impact, the regulation aimed to tackle corporate tax avoidance, like BEPS, was less successful. Finally, the chapter outlines concrete policy measures to increase transparency and reduce secrecy. There is an emphasis, as in so many of the chapters in this book, on the idea that increasing transparency and reducing secrecy is the magic tool for combatting tax avoidance, tax evasion and money laundering, and for empowering the regulators.

scholarly journals Legal Support For Automatic Exchange Of Tax Information According To The CRS Standard For Tax Residents Of Ukraine

2020 ◽  
pp. 101-118
Author(s):  
D.D. Kosse
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
Legal Responsibility ◽  
Reporting Standard ◽  
Regulatory Authorities ◽  
Exchange Of Information ◽  
Tax Reporting ◽  
Legal Grounds

The article deals with the issues of legal support and an integrated legal approach to the analysis and research of issues of provision, receipt, use of tax information in relation to individuals at the interstate level. The legal grounds for the current procedures for the exchange of tax information in Ukraine and the Hellenic Republic, the existing legal possibilities for obtaining tax information on possible tax residents of the respective countries have been determined. The author analyzes the powers of banks and other financial structures to obtain tax information, the legal responsibility of taxpayers, lists of financial structures that must take part in the receipt and transmission of such information are determined. An analysis of the implementation of the Multilateral Convention on Cooperation between Competent Bodies on the Automatic Exchange of Information According to the CRS (Common Reporting Standard) standard in Ukraine and Greece shows the need for legal mechanisms and legislative actions in Ukraine to launch multilateral automatic exchange of tax information on CRS standard. Specific complexes of legal actions for the implementation of multilateral automatic exchange of tax information according to the CRS standard in Ukraine are proposed. The proposed implementations of automatic exchange of tax information will allow the regulatory authorities to fully implement the policy of objective and transparent administration of taxes from income received outside Ukraine by tax residents of Ukraine. In fact, when such an exchange functions, the regulatory authorities will have the same information as inside the country and use it for the correct administration of taxes. This approach will help implement the principles of fairness in the payment of taxes. The effectiveness of such an exchange of tax information is confirmed by the results of the implementation in Ukraine of the FATCA (Foreign Account Tax Compliance Act) on tax reporting on foreign accounts, which was adopted to combat tax evasion by US residents and is already in force in Ukraine for tax residents of Ukraine in USA and US tax residents in Ukraine.

scholarly journals The BRICs and International Tax Governance: The Case of Automatic Exchange of Information

2019 ◽  
Author(s):  
Wouter Lips
Keyword(s):  
Financial Crisis ◽  
Tax Evasion ◽  
Global Financial Crisis ◽  
Tax Compliance ◽  
Balance Of Payments ◽  
Willingness To Accept ◽  
Reporting Standard ◽  
Exchange Of Information ◽  
The Global Financial Crisis

This article investigates the BRICs’ involvement in the adoption of Automatic Exchange of Information (AEoI) by the G20 and the Organisation for Economic Cooperation and Development (OECD) as a major breakthrough in the global fight against tax evasion. Our main questions concern the BRICs’ willingness to accept AEoI, and their agreement to the Western-dominated OECD as its institutional forum. First, we examine the domestic drivers for BRICs’ participation, as their statist model of capitalism reveals strong disincentives to join this regime and the fact that the budgetary consequences of the global financial crisis were less severe than in Western states. We argue that their agreement on AEoI results more from their persistent balance-of-payments vulnerability to illicit capital than from fiscal weakness, while also discussing the possibilities for mock compliance. Second, we review the role of the non-reciprocal US foreign account tax compliance act (FATCA) in shaping the BRICs’ preference for a multilateral AEoI-regime centred around the OECD’s Common Reporting Standard (CRS). Last, we show that the BRICs’ acceptance of the OECD resulted from pragmatic interests and receiving ownership over the process, together with the absence of coercive mechanisms within the CRS-regime that could fundamentally undermine their sovereignty in this domain.

EFEKTIFITAS PELAKSANAAN BUSINESS DEVELOPMENT SERVICE (BDS) OLEH DIREKTORAT JENDERAL PAJAK

2020 ◽  
Vol 22 (2) ◽  
pp. 156-171
Author(s):  
Imron Rosyadi ◽  
Ernani Hadiyati ◽  
Rini Astuti
Keyword(s):  
Tax Compliance ◽  
Business Development ◽  
Limited Time ◽  
Time Cost ◽  
Case Study Method ◽  
The Third ◽  
Directorate General ◽  
Positive Results ◽  
Development Service

Abstract : Since 2016, Indonesian Directorate General of Taxes (DGT) providedBDS’s program aimed to encourage the development of SMEs business andimprove their tax compliance. This study employed the case study method asthe framework, where participants were given the opportunity to provide as muchinformation as possible about their experiences in implementing the programs.The information then collected and sorted according to the sub-related categories.The results of the study indicate that BDS implemented by DGT generallyprovides positive results. There were several factors that determined the successof BDS implementation, namely employee’s participation, seminar material, andcooperation with the third parties. While the factors that were the constraint onesin the BDS implementation was the limited time, cost, and the human resource ofthe DGT itself. SME’s gets positif gain from the program. In addition, the BDSprogram has been proven to reduce the negative perception of SME actors ontaxes.Keywords: Business Development Service, SME , Tax Compliance, Tax Policy,

scholarly journals Role of the External Auditor in Maximizing Budget Revenues Jordan as a Case Study

2020 ◽  
Vol 10 (1) ◽  
pp. 182
Author(s):  
Ali Mustafa Magablih
Keyword(s):  
Tax Evasion ◽  
Tax Compliance ◽  
Audit Process ◽  
External Audit ◽  
Tax Collection ◽  
Positive Role ◽  
External Auditor ◽  
Data Auditing

External audit is an important factor in maximizing, collecting and increasing the efficiency of the financial departments with regards to controlling the budget revenues and making them smoother and also in the production of accurate and credible tax data and thus a real and fair taxation that achieves the objectives of different parties. External audit works on increasing and promoting the voluntary tax compliance, detecting and deterring cases of tax evasion, controlling the tax collection process almost completely, reducing the efforts of the tax departments through relying on the tax disclosure which would be provided by the taxpayer after an effective audit process; such a process contributes significantly to the prevention of intentional and unintentional cases of tax evasion resulting from fraud and error in both the tax data provided and the financial data on which data was prepared. This subject was strengthened by a field study based on a questionnaire to test the research hypotheses and reach to a set of findings and recommendations, most important of which is that the external audit has a positive role in improving tax collection through the adaptation of the financial departments on the tax disclosure prepared and approved by the auditor and ensuring the existence of a previous process in this regard that would reduce tax collection costs, contributes to the transition from a comprehensive data auditing to selective auditing and helps to eliminate past tax accumulations.

scholarly journals PERCEPTION OF CORRUPTION, PERCEPTION OF TAX COMPLEXITY, AND FINANCIAL INFORMATION ACCESS: EXTENDING THE ANALYSIS OF THE SLIPPERY SLOPE FRAMEWORK

Scientax ◽  
2021 ◽  
Vol 2 (2) ◽  
pp. 265-277
Author(s):  
Mardhiah
Keyword(s):  
Mixed Methods Research ◽  
Information Access ◽  
Tax Compliance ◽  
Financial Information ◽  
Voluntary Compliance ◽  
Tax Complexity ◽  
Two Factors ◽  
Directorate General ◽  
Trust And Power ◽  
Relationship Of

Tax literature indicates perception of corruption and perception of tax complexity as tax compliance factors. Nevertheless, although the initial SSF theory suggests several tax compliance factors to have associations with trust in and power of tax authorities, none of the SSF studies pay their attention on these two factors. Therefore, based on survey questionnaires on 500 individual taxpayers in Jakarta, Indonesia, as well as interviews on several taxpayers and tax officers in the Directorate General of Taxes (DGT), this study is dedicated to elaborating the associations between these factors and trust and power and how the change in financial information access affects them. Mixed methods research was used through conducting a survey of individual taxpayers, and interviewing both individual taxpayers and tax officers. The results show that the factors are proven to have significant influence on trust in and power of the tax authorities, even though there is no significant association between perception of tax complexity and power. The results also confirm main SSF assumptions that trust leads to voluntary compliance while voluntary compliance positively affects overall tax compliance. Yet, the study fails to evidence the relationship of power to enforced compliance, while enforced compliance is found to negatively affects overall tax compliance.

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