Sri Mulyani Assures That Singapore Supports Tax Amnesty Program

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati has responded to concerns that Indonesian taxpayers in Singapore would be reported to Singapore police should they participate in the tax amnesty program. Reports said that participation in the program would be considered tax evasion.

“I have verified the reports because it could be a hinderance. According to the Singapore government, they have asked Singaporean banks to facilitate their customer in the participation of the tax amnesty program to improve tax management,” Sri said Thursday at Senayan parliamentary complex, Jakarta.

Sri said that Singapore’s central bank said that Indonesian citizens’ participation in the tax amnesty program shall not be considered criminal, meaning that investigation by Singapore police would not be possible. “It should not excuse taxpayers from participating in the tax amnesty program,” she said.

According to Sri, Indonesian has cooperated with Singapore to block the ways in which Indonesians would be able to avoid the tax amnesty program. Sri expressed that the tax amnesty program is designed to improve tax compliance. “I expect taxpayers to use the opportunity to build up the Republic of Indonesia,” she said.

Last year, Singapore’s Commercial Affairs Department, who oversees financial crimes, demanded Singaporean banks to report its customers to police for participating in other country’s tax amnesty program. Singaporean banks, however, refused to comply.

This year, Singapore’s central bank has followed the lead, citing concerns that Singapore banks would lose their customers due to Indonesia’s tax amnesty program. The program is aimed at repatriating assets belong to Indonesian citizens living abroad.

ANGELINA ANJAR SAWITRI