Liputan6.com, Jakarta – The existence of a tax haven country is considered to be very detrimental because it indirectly dredges the wealth of developing countries, including Indonesia.
Coordinator of Publish What You Pay Indonesia (PWYP), Maryati Abdullah quoted from 2015 Global Financial Integrity (GFI) data, reported that Indonesia was ranked in the top 7 in the world as a country that has the highest black money flow to tax havens or tax havens.
In the 2003-2012 timeframe, he said, Indonesia was recorded to have disbursed slush funds amounting to the US $ 187.84 billion or around Rp2,442 trillion (exchange rate of Rp13,000 per US dollar). That means, on average, the total annual flow of black money in Indonesia is around Rp 244.20 trillion.
“Countries or activities in tax havens or countries that are in the top 10 illicit cash flow are the average countries that are rich in natural resources because this industry is a soft land for illicit money flows, money laundering, tax corruption, blurring of corporate documents, “Maryati said at the Transparency International Indonesia (TII) office, Jakarta, Sunday (10/4/2016).
Executive Director of the Indonesian Tax Forum (FPB) Initiative Coordinator Initiative, Ah Maftuchan added, Indonesia had lost the potential for tax revenues of around Rp 2,400 trillion during 2003-2013.
“This means that on average per year, the potential lost tax revenue is more than Rp 200 trillion. This money has the potential to evaporate taxes that flow from the territory of Indonesia to other countries and tax haven countries, “he said.
Meanwhile, the Program Manager of the International NGO Forum on Indonesian Development (INFID) Siti Khoirun Nikmah added, with the wealth of natural resources owned, Indonesia should be able to reap a lot of money to finance development, education, health, and others.
“The fact that the money we have is in a tax haven country, so we still have to owe it to fund priority programs. Some countries are in debt to build their country, but some countries actually take wealth by imposing low taxes, up to zero percent. That is the tax havens country, “said Siti.
Siti acknowledged that Indonesia was one of the countries that were disadvantaged by the existence of a tax haven country. This indicates that the international taxation system is one of the causes of inequality.
Many companies hide the company and register it in a tax haven country, even though they get profit from Indonesia.
“This is called transfer pricing. Tax avoidance is not only done by the rich, but also by corporations. The international tax system is lame, it only benefits developed countries but not for poor and developing countries, “she said.
Siti urged President Joko Widodo to play a stronger role in the multilateral forum to encourage global cooperation in more open, transparent taxation and provide justice for poor and developing countries. This activity, he added, must partner with other G20 member countries.
At present, she said, the G20 countries only implemented companies with assets of the US $ 750 million or around Rp 9 trillion which had an obligation to report profits.
The obligation to exchange information (Automatic Exchange System of Information) in 2018, she said, had only been taken seriously by 50 countries. While there are countries listed as tax asylum to reject the rule.
“So G20 countries must be brave enough to sanction this tax haven country. International circles must provide political and economic sanctions, for example, the prohibition of exports to pressure the country does not make itself a tax haven, “said Siti.
The Economic Governance Program Manager TII, Wahyudi, also urged the G20 to agree on the registration of beneficial ownership, refuse passports for perpetrators of corruption, taxation, and money laundering.
As well as regulating investments based on money from proceeds of crime, for example not being able to buy luxury assets which sometimes becomes a mode of money laundering.
“If this beneficial ownership is revealed, we can identify company A, for example, it turns out that it is owned by corruptors or owners who have indicated corruption,” Wahyudi said. (Fik/Ahm)
Source: here.