Indonesian tax officials are overwhelmed by the growing interest in the government's tax amnesty program. (Antara Photo/Basri Marzuki)

Singapore Denies 'Thwarting' Indonesia’s Tax Amnesty Program


JULY 25, 2016

Jakarta. The government of Singapore has denied allegations that several unnamed Singaporean banks have lured Indonesian customers to maintain their assets in the country, Singapore's Ministry of Finance and Monetary Authority of Singapore said in a statement on Saturday (23/07).

"Recent claims in the Indonesian media that Singapore is implementing policies to ‘thwart’ Indonesia’s tax amnesty program are untrue," the statement said.

Authorities also claimed that Singapore has not reduced tax rates or amended any of their policies in response to Indonesia's nine-month tax amnesty program.

"We subscribe to internationally agreed standards for combating money laundering and for exchange of information. If there is any case of suspected cross-border tax evasion, concerned authorities can approach Singapore – we have assisted and will continue to assist in line with the international standards," the statement said.

The allegations have garnered comments  from Indonesian top officials including Vice President Jusuf Kalla who said that it only proves that most of the money stashed in Singapore comes from Indonesia. Finance Minister Bambang Brodjonegoro also chimed in saying that the Indonesian government will continue to promote its tax amnesty program in Singapore, Hong Kong and London instead of being fearful in doing so.