JUSTITIA JURNAL HUKUM
FAKULTAS HUKUM UNIVERSITAS MUHAMMADIYAH SURABAYA
LAW NUMBER 9 OF 2017 AS AUTOMATIC FINANCIAL
INFORMATION EXCHANGE AND COMPARISON WITH
MALAYSIA
Bambang Sugeng Ariadi Subagyono.
Agus Yudha Hernoko.
Zahry Vandawati Chumaida.
Asri Wijayanti Faculty of Law Universitas Airlangga Jl.
Dharmawangsa Dalam Selatan.
Surabaya 60286 Telp .
5023151 Email: bambangsasfhuabr@gmail.
com, bambangsasfhua@yahoo.
Abstract Taxpayer data and information from banking and finance institution could be guidance on any Therefore, it could be a corrective act to do the law enforcement on increasing Inland Revenue.
Financial information exchange regarded to tax interests, besides by demanding way also could automatically way done (Automatic Exchange of Financial Account Information/AEo.
Indonesia commitment was manifested by Multilateral Competent Authority Agreement signed after AEOI on 3rd June 2015.
Indonesia agreed to start the financial information exchange automatically on September 2018.
The followed-up Indonesia government commitment was on 8th May 2017.
It had approved the financial information access no.
1 2017 legislations as to tax interests.
Then, one year later was set to be 9 2017 legislations.
Keywords : Automatic.
Exchange.
Financial Account.
sector, non-cash financial transaction by its Introduction In this institutions, are also useful to limit the transaction has been developing quickly abused real money on criminal act.
Money based on the world trade.
Financial transaction happens on any forms, whether Terrorism fund and illegal business.
cash or non-cash.
Basically, non-cash Moreover, the financial transaction by its transaction aims to minimalize the risk, institutions is easier the government supervision on wealth personal taxpayer.
modern era, business relation between each other Particularly in tax sector, it is as the vital instrument to countryAos finance Non-cash expenses revenue, whether routinely or usually is done by financial institution.
easier the transaction, easier the re-traced However, the tax revenue is still having transaction and decrease the real money.
internal and external obstacles.
Nowadays.
Besides has positive impact on economic Volume 3.
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reformation on directorate general of other banks and customers.
Those banks are (DJP).
The organization improvement, work process.
Therefore, a customer will not data process, banking information and entrust the fund or financial affairs on global trade.
Also, there are still many taxpayersAo avoiding tax to the abroad.
institution cannot guarantee the customer Therefore, by the central tax protection However, this system plays a existence from tax haven and there are no paramount importance role on protecting mechanism existence rules to obligate the banking confidential.
whether individual or exchange information between each other particular entity.
countries and judicially, it become more Even though there is a bank difficult to collect tax based on self- confidential towards government, includes assessment1 system in Indonesia.
tax authority, it will appeal the customers Regards to best tax collection, the potential to hide their activity, illegally to tax authority needs to be equipped with avoid the tax obligation.
Hence tax several abilities on data and information authority needs to have access on taxpayer collection that relates to taxation.
Hence, it financial transaction, to detect tax leak.
It is is quick and effective enough to identify, also an effort to do the law enforcement.
analyze the risks based on taxpayer 2 Regards to decrease the countryAos Taxpayer data and information revenue deviation.
President Instruction from banking sector through its institutions 10 2016 about prevention act and can be a guide on predicting any event or corruption eradication had focused mainly development, then can be correctively acted on Automatic Exchange of Information 5 by taking the law enforcement.
hortly AEoI).
It is as one of the strategic Bank confidential is a basic need to ways to repair the financial information each healthy banking system.
Initially, this processing system in Indonesia.
is obtained from the relation between each The general explanation of legislations replacement no.
1 2017 about financial information access to taxation importance.
Jitt B.
Gill, .
The Nuts and Bolts of Revenue Administration Reform, p.
OECD, .
Improving Access to Bank Information for Tax Purposes.
OECD Publications Service: Paris, p.
Darussalam.
Bawono Kristiaji, and Deborah.
AuBanking Data Access to taxation goal: The balancing between taxpayer rights and tax potential search-comparation studyAy.
Tax Law Design and Policy Series No 0514.
Februari 2014, p.
AEOI is the particular information as to taxpayer certain terms, periodically, systematic and continually from the countryAos producer or wealth saving to taxpayer country.
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AEoI discourse was an across Indonesia also could be included on non- countries initiative all over the world.
cooperative jurisdiction category.
Another.
Indonesia had committed to implement the Indonesia was worn as particular defensive AEoI based on Indonesia presidential measures by G20, which was set on July commitment on Summit Conference (KTT) G206 in 2013, 2014, 2015 and 2016.
IndonesiaAos position and bargain power Indonesia had also signed and ratified the with other countries, mainly related on tax, convention about united administrative in investment, loan and ease business doing.
Indonesia tax field.
It was signed in 2015 as Multilateral Competent This draft must be finished soon, before June 2017, so that Indonesia is not failed to be AEol member.
Legislations no.
21 2008 about sharia Based on the explanation above, the banking.
Legislations no.
8 1995 about patterns are as follows:
stock trade.
Legislations no.
1 2013 about Were there any crashed on norms micro financial institution, and Legislations between the bank confidential principle, 6 1983 juncto Legislations no.
that ruled in no.
7 1992 Legislations juncto Legislations no.
16 2009 as to public Juncto Legislations no.
10 1998 about regulations and tax procedures.
banking, with no,1 2017 Legislations government replacement about financial consequences, if this country does not Indonesia AEol How were the confirmed urgency about legislations of law number 9 of 2017 as if there had been no any appliance on categorized by AEol, until 30th June 2017, information access to taxation importance.
Legislations no.
10 1998 about banking.
There replacement rule no.
1 2017 about financial crashed by a few existed regulations.
Such Legislations countries, are by government legislations Agreement7 .
hortly MCAA).
The prerequisites fulfillment as G20 Authority AEol implementation had This the country allowance increasing effort ? AEol.
G-20 or 20 main economic group is the 19th big worldAos economy, added with European union.
MCAA is a multirateral instrument to facilitate the AEOI implementation, using Common Reporting Standard baseed on Convention on Mutual Administrative Assistance in Tax Matters, that had signed by Indonesia on 3rd Nov 2011 in Cannes.
France.
It is also had validated by presidential issued no.
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How were Malaysia's Commitment To mediator between funding and funding Implement Automatically Exchange need party.
One factor to maintain and Information Relating Financial increase the societyAos reliability was to keep Accounts (AEOI) ? the bank confidential obligation.
Research Method Based Verse Legislations This is juridish normatif research with replacement Legislations no.
7 1992 about comparative approach.
banking, which literally was the bank It was anything that related to Discussion customersAo information about saving and Bank Confidential Principle There was limitation to this.
Implementation after The Legislations Rule Also, based on given definition on Appliance no.
1 2017 about Financial verse 1 no.
28 Legislations no.
10 1998,
Information about the legislations replacement no.
Replacement Government Access Taxation 1992 about banking and other verses.
Importance.
could be obtained as follows:
After the Legislations no.
That bank confidential is related to replacement government rule, about the taxation information openness, society safekeeping customersAo That confidential principle, which then was is the bank confidential customersAo obligation, except at exception The worried appealed because category, based on procedure and of the punishment threat, whether criminal applied legislations rule.
The prohibited bank confidential or fee to the bank, which protected the customersAo data.
opened, is the bank itself or Bank as a financial institution, has a funding activity whether financing or The banking world development, collecting and funding distribution.
So, the had reached two theories about the bank as an intermediation institution is to be Those were 10 Adrian Sutedi, .
Banking Law as a merger money laundering review, liquidity and bankruptcy.
Jakarta: Sinar Grafika, p.
Try Widiyono, .
Law aspect on banking product transaction operational law in Indonesia.
Bogor : Ghalia Indonesia, p.
Kasmir.
Loc.
Cit.
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Bank confidential was an absolute Based Clause characterized .
bsolute theor.
Legislations That was the bankAos obligation to legislations replacement, after Legislations save the customerAos confidential to 7 1992 about banking.
Saving customer is themselves who placed the fund in a customersAo It is on agreement saving based on the The second theory was relative agreement between both.
Debtor is a credit confidential bank.
The bank was or fund facilitated based on Sharia only allowed to open customersAo Based on the definition above, confidential, if there were any then bank customers data divided into two urgent need, such as countryAos `Saving was trusted fund by society Legislations Legislation 10 1998 about to the bank, based on fund saving agreement, whether on giro deposit, regarded to banking.
However, it was used deposit certificate and saving or any bank confidential theory that relatively similar forms.
characterized and could be known on Credit or fund facilitation based on Clause 40 Verse .
Also, it was also Sharia principle or similar, based on determined the customersAo confidential as bank agreement to saving and safekeeping, except as stated on Clause 41, 41a, 42, 43, 44 and 44 a.
Based on the bank customers Then, those banks voluntarily keep the confidential data definition, it was quite societyAos confidential.
similar to financial statement as stated on Based Legislations Clause Clause .
, related to Legislations Replacement Government rule no.
Legislation no.
7 1992 terms of banking.
about the financial information access to Regarded to customers, it is a party to use tax importance, that determined financial banking service.
Then, legislations no.
statement as stated on verse 2:
Financial account holder identity.
Legislations no.
7 1992 as to banking.
Financial account number difference the customers saving and Financial service institution identity customer debtor.
Deposit or financial account amount Volume 3.
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Result that was related to financial third parties, which has taxpayer relation in tax checking, tax Therefore, based on Clause 2 verse billing or criminal .
Legislations Replacement Government investigation in taxation field, based Rule no.
1 2017 about Legislations no.
on written demand from Directorate 2017 as to financial information access to General of Taxation.
taxation importance.
Basically, it could be Regarded to verse .
that related to confidential obligation, to check the protected by bank.
The absolute theory was need, tax not applied anymore.
act investigation in taxation.
The The confidential theory is absolute billing or criminal Nowadays, it is not used eliminated, except to the bank, anymore, because of abused act in taxation based on written demand Ministry of Almost all countries use bank Finance.
confidential that relatively characterized.
So, the bank confidential unveiling Because countryAos could only be done to taxation importance.
Indonesia has right to know the taxpayer if the taxpayer related is undertaking financial statement.
Hence, the government criminal act on billing or investigation can prevent the criminal act on taxation.
The confidential unveiling permit However, tax is a huge countryAos revenue.
based on case per case, not as a whole.
Based on lause 40 verse .
Then, based on Clause 34 .
Legislations no.
10 1998 about Legislations Legislations no.
28 2007 about the third 7 1992 replacement that ruled as to replacement, after Legislations no.
about general regulation and taxation confidential that as the same as Clause 35 procedures, are as follow:
Legislations no.
28 2007 about the .
Each officers were prohibited to third replacement after no.
9 1983 about reveal other parties, about anything regular rule and procedure that stated:
to the taxpayer, for the sake of their information or proof from job or position, to run the taxation legislations rule .
The prohibition as mentioned on bank, public accountant, notary, tax verse .
, also applied on experts, consultant, administration office or which was showed by Directorate Volume 3.
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General of Tax.
It was to assist the information, as stated on Clause 15 Based on Clause 34 () and .
Directorate General of Taxation Legislations no.
28 2007, about the third Clause basis data.
replacement based on no.
6 Legislations .
Every financial information and 1983, as to public regulation and taxation evidence as stated on verse .
was a Therefore, each officer whether confidential guarded obligation.
functional, structural and expertise, was was as on the legislations and prohibited to reveal, distribute or tell the international agreement.
Every officers, whether functional or If they did not obeyed the structural in taxation field, and regulations above, based on Clause 41 .
pointed expertise by directorate Legislations Indonesia Republic no.
general of taxation, to help the 2007 about the third replacement after Legislations no.
6 1983 as to public implementation, was prohibited to regulation and taxation procedures, which was determined the ignorance officer as information, evidence as mentioned stated above, will be entangled by Clause on verse .
, to unauthorized parties, 34, with at the very maximum 1 year jailed with legislations rule on taxation and fee at the very most 25 million rupiahs.
Yet, the replacement government .
Every officers, whether structural or rule no.
1 2017 about financial information functional in taxation field, and access to taxation importance, was not ruled pointed expertise by directorate as to the leaked financial information.
general of taxation to assist taxation Whereas, on the implementation rule, were:
legislations implementation, which Ministry was not fulfilled the confidential obligation as stated to verse .
was functional regarded to financial information convicted to Clause 41 Legislations access for the sake of taxation importance.
It is ruld on Clause 30:
regulations and taxation procedures.
Finance 70/PMK.
03/2017
Financial information above, as after a few times replacement with stated on Clause 7 and Clause 17 and Legislations no.
16 2009 about the Volume 3.
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Clause 1 Legislations no.
Legislations 2011, about the legislations draft, 2008 about the fourth replacement, explained by legislations rule form.
based on no.
6 1983 legislations as to Legislations rule form is legislation general regulations and taxation making that encircles planning, procedures to be legislations.
arrangement, review, validity or confirmation and invitation.
This Legislations of law number 9 of 2017 as the countryAos revenue authorized institution.
Therefore, increasing effort.
there is structural or procedural in a The The lower rule legislative rule is a legislation regulation that institution issued must be based on applies in a country, such as higher legislative issued institution.
Indonesia.
Therefore, the national All legislations rule is a made rule by characteristics, as follow:
authorized countryAos institution to be obeyed by all citizens.
Pointed Legislation regulation based on written rule form.
legislations rule is aimed to rule the Legislations national life.
Hence, all citizens to confirmed and issued by countryAos be obligated as legislations rule.
institution or authorized officers.
The society fulfillment need whether national or regional.
based on good legislations.
Then, the rule is urgently needed as to the Legislations regulation fulfilled by norms or attitude patterns rule.
legislations form by certain and Legislations regulation tied as a standard method.
It related to all whole and public.
Based on Clause 7 verse .
institution to form legislations rules.
Legislations Clause 22 A 1945 stated further legislations rule making, confirmed making procedure, that is ruled by 12 2011 about legislation regulations as below:
Then, it describe on Indonesia legislations 1945 PeopleAos consultative assembly decree Legislations legislations rules form.
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Legislations / Legislation government regulations or rules, as to the legislations Jimly Asshididiqie stated:11 replacement regulation Government regulation Those President regulation Province regulation City / Town regulation.
government regulation forms, as stated on Clause 5 verse .
Also.
Also, based on those regulations, the Aupresident replacement regulation is similar with confirmed the government regulation to run as it ought to be.
Ay If it was Yet, replacement government regulation making is different with legislations making.
regulation, then the provisions could Legislation is House of Representatives be inputted into legislations to replace previous legislations.
agreement altogether .
egislative produc.
Whereas.
Principally, the government legislative replacement was not the official government regulation is decreed by government named.
It was called as president, regards to the urgent condition.
perrpu or Another, it is the government regulation government regulation.
Then, this appliance, that has limited terms because of named was very different from the the house of representative agreement, next constitution RIS 1949 and Legislations If those regulations are agreed by house of representative, then it will be legislations are all the same as urgent Otherwise, it those regulations legislative terms or as similar as perrpu are disagreed, then it will be revoked.
Both The government regulation as the replacement government regulation issued, legislative replacement, was only on clause 22 verse .
legislations 1945, it decreed by president, if fulfilled the President (Auurgent situationA.
Jimly Asshididiqie, .
, state administration and democration pillars .
piece of law reasoning.
Media and Human right.
Press Konstitusi, p.
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the confirmed regulation to be Based on the constitutional court no 138/PUU-VII/2009.
House Representative prerequisites parameter of .
rgent or forced agreement or disagreement towards situatio.
for president to confirmed the PERPU.
Those were:
government regulation.
There were urgent condition to Regarded to legislative replacement finish the law problem quickly, government rule by house of based on the legislations.
The needed legislations had been no replacement government regulation was confirmed to be legislations.
plenary session.
The legislative The Regarded by usual procedural legislative making.
It was because regulation, that had not been agreed taking too much time, whereas the by house of representative in a urgent condition needed to be certainly finished replacement legislations must be Then revoked and unapplied.
process by legislative government Regarded replacement regulation in Clause replacement government regulation 52, legislative no.
12 2011 about the must be revoked and unapplied legislative regulation made.
Those stated as on verse .
House of Representative must proposed the The legislations draft as to legislative replacement regulation had to be replacement government regulation House Representative in the next court.
The The replacement government regulation replacement regulation proposal as revoked, as stated on verse .
that stated on verse .
, by undertaken ruled all law causes, from that the legislative draft proposal about Volume 3.
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Legislations maintain the effectiveness of tax amnesty policies.
government regulation revoke, as international agreement in taxation to be legislations, about the revoke Indonesia had obligation also in the plenary session on verse .
to fulfill the engage commitment in implementing automatic financial fundamental issued, government information exchange (Automatic legislative replacement regulation Exchange of Financial Account 1 2017 about the financial Informatio.
Indonesia had also information access importance, then those could be regulations as legislations about considered as follow:
financial information access to The taxation importance before 30th development of Indonesia, that had June 2017.
aim to prosper all citizens, needed Indonesia had tied tightly on the stated on verse .
It was confirmed Regarded If Indonesia had not soon fulfill the funding from the countryAos revenue.
It is mainly from taxation.
Hence.
Indonesia would be considered as a regarded to fulfill the tax revenue, it failed country to fulfill the financial needed to give wide access to tax information exchange commitment So, they could get any automatically .
ail to meet its financial information to taxation Definitely, it would There were still many access Indonesia.
Such as, the decrease as G20 countries, the decrease of regarded to any financial investor trust and national economic stability disturbance potential.
Also, taxation, banking, sharia banking.
Indonesia could be the countryAos stock trade field also other taxation illegal fund destination.
However, it could also Based on the consideration implied cause obstacles to taxation authority on point .
and the urgent in strengthened the taxation data, necessary to give wide access for fulfill the tax revenue need and tax authority to receive and to Volume 3.
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obtain financial information for government solution to implement tax taxation, so the government need to It is needed because the level determine the substitute law about of Indonesia Tax discipline is still low.
financial information access for was proven by only 11 million people from 2 million people submit their tax report documents last year.
Thus, the substitute law for Law No.
1/2017
is as explained in point (C) explaining about After the substitute law of No.
1/2017 was below points.
legalized, on 23 of August 2017.
House of Reporting the People Representative (DPR) has legalized it as The Law No.
9/2017 about information as implied in article .
the determination of government law subsection .
that point .
is Indonesian Officers No.
1/2017 as The Law.
In addition, the considerations about its determination are mentioned in below points, as followed:
authorization is to give information The implementation of national exchange and Jurisdiction Officers development in Indonesia aims to whose duty is to create IndonesiansAo prosperity and report the information exchange Thus, there Giving information and proof based funding from the State to fulfill the on the request implied in article .
Therefore, wide authority subsection .
that point .
is access to get finance information is conducted to give information as the needed in that the funding may be officersAo request both Indonesian taken from the tax and Foreign Jurisdiction.
There are still limited access for Indonesia authority tax to receive Additionally, other important thing of the and to get the information explained substitute law is as mentioned in point A in the Law about taxation, banking, previously explained.
sharia banking, capital market and Leo Rinaldy stated that the Government other Laws which may cause Law No 1/2017 determination is actually obstacles for tax authority in http://finansial.
com/read/20170517/90/654 427/ .
ccessed on 30 of July 2.
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strengthening basic data of taxation The realization of Law No.
9/2017 was also to fulfill the needs of tax and to keep to fill the commitment of Indonesia in it work effectively implementing Automatic Exchange of Indonesia Financial Account Information (AEoI) agreed in the international agreement.
This is done to avoid the lowering of Indonesia credibility as G20 member and the trust of Automatic Exchange of Financial foreign investors and to keep Indonesia Account from illegal funding that disturb the Information.
Thus, stability of national economy.
Indonesia must soon form the Law about financial information access The Ministry of Finance.
Sri Mulyani, before 30 of June 2017 President stated that the access of financial data is considered as an optimism feeling to substitute law for government law achieve the target of tax on 2018 which is No.
1/2017 on 8th of May 2017 4 trillion rupiah with tax Based on point a, b, c and d.
Indonesia assumption ration of 11.
5% from the Domestic Bruto .
he market value of all substitute law for government law products produced by a country in certain No.
1/2017 as the Law Hence, the target increases up to Financial information access in The Law 3% from the previous years.
The No.
9/2017 includes the access to receive legalization of the legislation as Law and to get financial information to conduct ensured the world that Indonesia has been the law of taxation and international ready to implement Automatic Exchange of agreement in taxation, banking, sharia Financial Account Information (AEOI) on banking, capital market and other Laws.
September, 2018.
Additionally, this act also This access is to support the taxation authority in strengthening basic data of commitment to improve the transpiration of taxation to fulfill the needs of tax and to financial sector.
Besides that, the tax keep it work effectively.
shifting out could be minimalized for Indonesia https://w.
com/ .
ccessed on 31 of August 2.
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The implementation of the Law No.
9/2017
will be effective if it is supported by the information relating to financial accounts human resources in the general Directorate (AEOI) of Tax, especially in checking and Convention on Mutual Administrative Assistance in Tax Matters (Conventio.
This support will stimulate The OECD had also developed the others so that the coordination of other Common Reporting Standards (CRS) which parties, banking, is also fulfilled.
The set out the common information to be implementation of data exchange, based on article 35A about tax procedures, cannot institutions of participating jurisdictions, work well because there was no written for purposes of implementing AEOI locally.
agreement specifically among institution .
on 27 January 2016, signed the on taxation system so that the officers may to implement AEOI.
Malaysia had: 15 Other supporting element is integration data As part of Malaysia's commitment and banking leaders.
Multilateral Competent Authority Agreement which details the rules The administration is still being the prominent duty as long as the between participating jurisdictions.
State expects quantitative result.
14 Thus, through the determination of new Law No.
9/2017, is expected that the Tax General .
on 25 August 2016, signed the Directorate has potency to increase the Convention in view of fostering all basic data of tax while doing the spreading forms of administrative assistance system and information exchange.
in tax matters with the other signatories of the Convention.
Malaysia's Commitment To Implement Automatically Exchange Information December following legislations were introduced in Relating To Financial Accounts (AEOI).
Malaysia:16 transparency, over 100 countries have IBID.
https://w.
ccessed on 31 of August 2.
IBID.
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the Income Tax (Multilateral Competent Authority Agreement on (Generally Individual September 2018 or refers to a low-value Automatic Exchange of Financial depending on when Account Informatio.
Order 2016.
opened as of 30 june .
the Income Tax (Convention on Mutual Administrative Assistance September 2018 or depending on when of Financial Account Informatio.
Rules 2016 (AEOI Rule.
Entity .
Income Tax (Automatic Exchange in Tax Matter.
Under Reportable The Inland Revenue Board of Malaysia has committed to exchange Malaysia (IRB) has announced that the first information with respect to different types list of reportable jurisdictions will be of accounts opened and maintained by the published by 15 January 2018, and will be Malaysian revised by 15 January of the following accordance with the following timelines: 17 Type of accounts Intended date for The AEOI Rules, which came into the exchange of effect on 1 January 2017, implements the New account .
enerally CRS Malaysia.
The AEOI Rules apply to September 2018 every Reporting account opened on or after Financial Institution, which is defined as a Financial Institution 1 july 2.
that is resident in Malaysia .
xcluding any Pre- Individual high-value Type of accounts September 2018 branch of that Financial Institution that is located outside of Malaysi.
and any Intended date for the branch of a Financial Institution that is not exchange of resident in Malaysia if that branch is located in Malaysia.
A Financial Institution is defined under Section Vi of the CRS.
IBID.
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Under the AEOI Rules, every procedures as prescribed under the CRS.
Reporting Financial Institution is required There to comply with the following:18 procedures depending on whether these are pre-existing accounts or new accounts, and Due Diligence Requirements Each whether such accounts are held by Financial individuals or entities.
The Reporting Institution is required to identify the Financial Institutions are required to relevant reportable accounts maintained by complete the due diligence review in the Reporting Financial Institution by respect of its account holders in accordance with the timeline below:
Reporting Type of accounts Deadline For Completion Of Review Pre-existing high value individual account 30 June 2018 Pre-existing low value individual account 30 June 2018 Pre-existing entity Agregate account 30 June 2018 balance or value that exceeds USD 250.
Type Of Accounts Deadline For Completion Of Review As of 30 June 2017 Agregate account balance or Within the calendar year of value that does not exceed the following year in which USD 250.
000 as of 30 June Agregate account balance or value exceed USD 250.
of Inland Revenue (DGIR) on or before 30 Reporting Obligations Every Financial to which the return relates.
As such, the first Institution is required to furnish an reporting in respect of the calendar year information return to the Director General 2017 will be required to be made to the Reporting June of the year following the calendar year IBID.
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DGIR by 30 June 2018.
The reporting Most of the players in the financial would need to be made via the IT platform industry are Financial Institutions within maintained by the IRB, the details of which the meaning of the CRS, including banks, are expected to be released later this year.
insurance companies, brokers, investment funds and trust companies.
However, the The information return will need to classification rules under the CRS and contain certain details relating to each AEOI Rules are complex and it is important reportable account, including the name, for the industry players to undertake a address, jurisdiction.
of residence, tax identification number.
of the account apply to them.
of the end of the relevant calendar year .
With the introduction of the AEOI if the account was closed during such year, the closure of the accoun.
Rules, it is also timely for Malaysian financial institutions to review and refine The Finance Act 2016, which was the customer due diligence procedures and gazetted on 16 January 2017, introduces internal processes to ensure that reportable new penalty provisions to the Malaysian accounts are identified in accordance with Income Tax Act (MITA).
Under the the AEOI Rules.
On-going monitoring for proposed new Sections 113A and 119B of changes in circumstances is also crucial in the MITA, it is an offence for any person to ensuring that information relating to the make an incorrect or false return, or fail to account holder maintained by the financial comply with any rules made to implement institutions is accurate and up to date.
or facilitate any mutual administrative of their activities in determining how these rules holders, and the account balance or value as .
ncluding In light of the broad list of AEOI Rule.
jurisdictions adopting and enforcing the AEOI, individual taxpayers should also be Any person who is convicted for an cognizant that the Malaysian government offence under these new provisions will be will receive financial information of liable to a fine of not less than RM 20,000 Malaysian residents relating to bank and not more than RM 100,000 and / or accounts maintained outside of the country.
imprisonment for a term not exceeding six For high-net-worth particular.
AEOI and CRS would result in significantly increased transparency in Volume 3.
No.
2 Oktober 2019 ISSN Cetak: 2579-9983,E-ISSN: 2579-6380 Halaman.
JUSTITIA JURNAL HUKUM
FAKULTAS HUKUM UNIVERSITAS MUHAMMADIYAH SURABAYA
relation to their financial assets and wealth determination and tax procedures.
management structures.
In this regard, it This Law rules the opening of bank would be prudent to undertake a review of secret for only taxation matters.
The the existing structures to consider if there implementation of that Law is are any historical non-compliance issues mentioned in article 41, subsection which need to be addressed via any .
of the Law No.
28/2007 about the applicable tax amnesty programmes or third change of Law No.
6/1983
voluntary disclosure schemes.
Tax and explaining the general procedures foreign exchange control rules will also of tax, in which an officer who does need to be considered and assessed as the not meet the requirements in article exchange of information will further bring 34 will be arrested one year with 25 in light any non-compliance in these areas.
million rupiah as the fine.
The rule of sanction is mentioned in article Conclusion Ministry Finance No.
70/PMK.
03/2017
Based on the explanation above, this study The determination of substitute law can be concluded as below points, are:
No.
1/2017, the Law No.
9/2017,
Almost all countries in the world ensured the world that Indonesia use relative theory because the ensured the world that Indonesia has country has interest on the financial been ready to implement Automatic information of the tax.
Thus, the Exchange of Financial Account Information (AEOI) on September, taxation crime because, nowadays.
Additionally, this act also tax is the funding resource of a deleted the hesitation of Indonesia It is in accordance with article 40, subsection .
on the Law transpiration of financial sector.
No.
10/1998 about the alteration of Besides that, the tax shifting out Law No.
7/1992 explaining about could be minimalized for taxpayers.
In addition, it is also in line with article 35, subsection .
of the References