Fitri Novia Heriani, Yanuar Pribadhie
The Directorate General of Tax (DJP) has been making its best efforts to achieve its national tax income target. As part of this process, the DJP is asserting the importance of excluding the institution from the bank customer confidentiality rules.
Fuad Rahmany, the Director General of Tax, delivered this proposal to the members of the House. He explained that DJP’s access to certain bank information should not be limited to tax offence investigation purposes.
In the current amendment processes to the Banking Law by Commission XI of the House, the DJP hopes that the amendment will broaden access to bank information for tax collection purposes.
“This rule is common in the United States, Australia, and Malaysia. These countries open access to bank information for taxation purposes,” claims Fuad.
Under the existing Banking Law, every bank must keep all information related to customers and their savings confidential. This obligation does not apply if the information is required for investigation purposes. Fuad blames this confidentiality rule for hampering DJP’s efforts to access necessary customer data.
Fuad argues that utilizing customer information for taxation purposes is not difficult. Customer data, namely bank account details, is valid data that should be available to the DJP. Further, customer data can also be utilized to measure tax payer compliance with the Taxation Law.
“The more information we can get, the more we’ll collect potential taxes,” says Fuad.
In contrast, Ecky Awal Mucharam, a legislator from Commission XI criticizes the DJP’s excuses. Ecky cannot accept the idea that the DJP has limited access to bank information under the confidentiality rules as an excuse for not achieving targets. Even if the proposal is accommodated for in the current amendment process, implementation will take a long time.
“The DJP should consider another solution for achieving targets before the open-access idea is approved. For example, they can measure data conformity between assets and the amount of tax paid or they can consider increasing their staff,” said Ecky.
The target tax income in the 2014 State Budget Draft is IDR 1,142 trillion. This amount is higher than in 2013 for which the target was IDR 995.2 trillion. Up to 31 July 2013, realization of tax income had reached IDR 484.1 trillion.
(hot/kc)
Fitri Novia Heriani, Yanuar Pribadhie
The Directorate General of Tax (DJP) has been making its best efforts to achieve its national tax income target. As part of this process, the DJP is asserting the importance of excluding the institution from the bank customer confidentiality rules.
Fuad Rahmany, the Director General of Tax, delivered this proposal to the members of the House. He explained that DJP’s access to certain bank information should not be limited to tax offence investigation purposes.
In the current amendment processes to the Banking Law by Commission XI of the House, the DJP hopes that the amendment will broaden access to bank information for tax collection purposes.
“This rule is common in the United States, Australia, and Malaysia. These countries open access to bank information for taxation purposes,” claims Fuad.
Under the existing Banking Law, every bank must keep all information related to customers and their savings confidential. This obligation does not apply if the information is required for investigation purposes. Fuad blames this confidentiality rule for hampering DJP’s efforts to access necessary customer data.
Fuad argues that utilizing customer information for taxation purposes is not difficult. Customer data, namely bank account details, is valid data that should be available to the DJP. Further, customer data can also be utilized to measure tax payer compliance with the Taxation Law.
“The more information we can get, the more we’ll collect potential taxes,” says Fuad.
In contrast, Ecky Awal Mucharam, a legislator from Commission XI criticizes the DJP’s excuses. Ecky cannot accept the idea that the DJP has limited access to bank information under the confidentiality rules as an excuse for not achieving targets. Even if the proposal is accommodated for in the current amendment process, implementation will take a long time.
“The DJP should consider another solution for achieving targets before the open-access idea is approved. For example, they can measure data conformity between assets and the amount of tax paid or they can consider increasing their staff,” said Ecky.
The target tax income in the 2014 State Budget Draft is IDR 1,142 trillion. This amount is higher than in 2013 for which the target was IDR 995.2 trillion. Up to 31 July 2013, realization of tax income had reached IDR 484.1 trillion.
(hot/kc)