TEMPO.CO, Jakarta - President Joko Widodo alias Jokowi and Finance Minister Sri Mulyani yesterday discussed regulation in lieu of law (Perppu) no. 1/2017 on automatic exchange of information (AEOI).

“I reported that the opinion of [House] factions is quite positive with regard to the Perppu,” Sri Mulyani said after meeting Jokowi at the Presidential Palace yesterday.

As widely reported Perppu on AEOI is aimed at allowing the Directorate General of Tax access to banking data of taxes dodgers. The regulation was issued following an international agreement on banking information.

Sri Mulyani said that House members expect that the Tax DG disseminate information about the regulation for fear that it may be abused by taxmen to intimidate taxpayers.

“We will conclude all internal regulations to ensure system security and data secrecy. It may be made in conformance with regulations on the exchange of information applied in other countries,” Sri Mulyani said.

The Finance Minister will also issue a procedure and guidelines for Perppu on AEOI that will regulate access to data, tax official responsibilities and confidentiality.

“The House suggests that those breaching confidentiality be subjected to [sanctions] similar to those of tax amnesty. It’s an anticipatory measure [to prevent] officials from committing abuse,” Sri Mulyani said.

ISTMAN MP