Indonesia Proposes Law to Give Tax Office Access to Bank Data
Jakarta. Indonesia's government has proposed a law that will give its tax office access to client data held by banks, the finance minister said on Wednesday (08/06), taking another step toward boosting tax collection and rein in a widening budget deficit.
The proposed revision to the tax administration law will "eliminate data secrecy for the purpose of taxes," Finance Minister Bambang Brodjonegoro told a parliamentary hearing.
Banks in Indonesia are currently protected by a law that requires the tax office to file a request to the financial services regulator to get access to a bank's data on its customers, and only for the purpose of an investigation.
The central bank governor said last month that Indonesia has to adjust its banking law to aid its tax officials before 2018, in line with the global trend.
The Southeast Asian nation had committed to a pledge by G20 and countries belonging to the Organization for Economic Cooperation and Development (OECD) on automatic exchange of information for tax purposes.
As part of its efforts to boost revenues, the government was due to introduce a tax amnesty programme this month, but it is facing a delay until July at least as lawmakers are still arguing over what rates should be applied.
Under the amnesty, the government would offer low rates for taxpayers who declare untaxed assets at home and abroad in order to broaden the tax base.
It could boost tax revenue by an additional Rp 165 trillion ($12 billion), according to the government's projections.
Reuters
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