TEMPO.CO, Jakarta - John Hutagaol, director of international taxation at the Finance Ministry's Tax Directorate General (Tax DG) said that members of the international tax authorities community have agreed to promote voluntary information transparency. Therefore, the international community decided to implement the Automatic Exchange of Information (AEoI) and the Base Erosion and Profit Shifting (BEPS).
According to John, the BEPS includes 15 action plans. The Tax DG is currently formulating the 12th action plans, namely mandatory disclosure rules, to be adopted in domestic regulations.
"The Tax DG is currently studying [the BEPS], and we will issue the regulation," John said at his office in Jakarta on Friday, March 17, 2017.
One of the countries implementing the 12th action plan is the United Kingdom.
"If a taxpayer is making a tax planning, it must be reported to the tax office, including their promoters," John explained.
The promoter, John went on, includes people who provide advice related to the tax planning to taxpayers.
"[Promoter includes] tax consultant, financial consultant, bank, lawyer, public accountant, and individuals who recommend a tax planning to taxpayers. They must provide reports to the tax office," John added.
The Tax DG will also adopt four action plans serving as minimum standards in the first stage of BEPS implementation. The four action plans are harmful tax practices, treaty abuse, transfer pricing documentation, and dispute resolution.
John continued that the Tax DG is currently finalizing a regulation related to the third action plan of the BEPS, namely controlled foreign company rules.
ANGELINA ANJAR SAWITRI
