Indonesia: New policy to allow tax authorities to access banks’ taxpayer data
International Tax Review is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Indonesia: New policy to allow tax authorities to access banks’ taxpayer data

Karyadi-Freddy
Oct16

Freddy Karyadi

Danny Tanuwijaya

As the tax amnesty period comes to an end soon, the Indonesian tax authority has prepared its next plan to improve tax revenue and tax compliance.

The tax authority intends to focus on taxpayers who have not participated in the tax amnesty but have not declared all of their taxable assets. One of the mechanisms the tax authority plans to use to detect undeclared assets is to access taxpayer data in banks in Indonesia.

On January 6 2017, the Minister of Finance issued the Minister of Finance Regulation No. 12/KMK.03/2017 on the Stipulation of Application, Application Procedures, Electronic Official Scripts, and Special Code for Official Scripts, Electronic Application for the Disclosure of Bank Secrecy (MoF Regulation 12/2017).

MoF Regulation 12/2017 introduced an electronic application called "Akasia" as the way to apply the request for the disclosure of bank secrecy for taxation purposes. Bank secrecy under MoF Regulation 12/2017 has a broad meaning, where it has been defined as anything related to information on the depositor and his/her savings.

As background, a bank is a third party that establishes a relationship with taxpayers and is bound with confidentiality obligations. For the purposes of inspection, preliminary evidence assessment, the investigation of a tax crime, tax billing, and objection processes, then such confidentiality obligations are abolished through a written request from the Minister of Finance to the Chairman of the Board of Commissioners of the Financial Services Authority.

A written request is based on the proposal from the Directorate General of Taxation and can be submitted through an electronic application. Akasia is introduced to serve this purpose and is expected to provide legal certainty and encourage the acceleration and increase of effectiveness in requesting the information or evidence from banks by replacing the previous manual process.

Akasia is an information system software for the management of the application for the disclosure of bank secrecy, which is network-based, to record, upload supporting documents, give approval, and print the request for the disclosure of bank secrecy, and as the means for information and monitoring the request for the disclosure of bank secrecy.

Freddy Karyadi (fkaryadi@abnrlaw.com) and Danny Tanuwijaya (dtanuwijaya@abnrlaw.com), Jakarta

Ali Budiardjo, Nugroho, Reksodiputro, Law Offices

Tel: +62 21 250 5125

Website: www.abnrlaw.com

more across site & bottom lb ros

More from across our site

KPMG Netherlands’ former head of assurance also received a permanent bar and $150,000 fine; in other news, asset management firm BlackRock lost a $13.5bn UK tax appeal
The new, fully integrated office will also offer M&A, dispute resolution, IP and corporate tax services
The new guidance concerns a recent 1% excise tax on the repurchases of corporate stock for both US and certain foreign companies
Interpath has hired a managing partner from rival accounting firm BDO to lead the new operation
Survey results of over 28,000 in-house lawyers reveal that American in-house counsel place a higher value on the reputation of external advisers than their peers elsewhere
In an exclusive interview with ITR, Andrew Leigh also endorsed new legislation designed to prevent multinationals using complex corporate structures to reduce taxes
Nick Crama and Parwesh Bissumbhar, senior director and manager respectively at Alvarez & Marsal, outline practical advice for real estate managers to comply with DAC6 regulations
The finalists for the 13th annual awards revealed
Survey results of over 25,000 in-house lawyers show competitive pricing and transparency in billing practices can help firms win clients
The new tech partnership will assist clients worldwide with pillar two; in other news, UK accountancy firm MHA completes a regional merger
Gift this article