Practice Transfer Pricing Cause Indonesia Loss Rp 100 T
JAKARTA – Indonesian Institute of Accountants (IAI) considers Indonesia may not completely avoid the impact of the practice of transfer pricing. Therefore, Indonesia must prepare regulatory and law enforcement strong to protect the interests. The practice of transfer pricing is one of the activities of neo-liberalism.
According to the National Governing Council members IAI Maliki Heru Santosa, the main purpose of transfer pricing is to evaluate and measure the performance of the company. But often transfer pricing used by multinational companies to minimize the amount of taxes paid by the engineering price transferred among divisions.
Maliki stressed that the key to the success of transfer pricing from tax side is the transaction because of a special relationship. In the last five years, the issue of transfer pricing has become a global issue that is complex and can not be solved partially. Different interests among businesses with the tax office makes this issue is not easily resolved.
“The practice of transfer pricing is suspected to have caused a loss in the taxation sector reaches billions and even trillions of rupiah. The practice of unnatural tend to favor the countries that actually protects the practice of improperly, such as the countries of tax haven countries,” he said at the “Transfer Pricing In The Era Of Transparency “in Jakarta, Tuesday, September 15th yesterday.
According to him, transfer pricing is a classic issue in the world of taxation, particularly with regard to international transactions undertaken by multinational corporations. From the government side, transfer pricing has the potential to reduce state tax revenue, because the multinational company tends to shift the taxation obligations of countries that have higher tax rates apply to countries with lower tax rates.
“On the other side of the business side, companies tend to seek to minimize the costs, including the minimization of tax payments the company,” he said.
In general, according to him, transfer pricing may result in the transfer of income or tax base or the cost of one taxpayer to another taxpayer that can be engineered to suppress the overall amount of tax payable of the taxpayers who have a special relationship.
Besides, he added, the practice of transfer pricing may occur between the taxpayer in the country or among the taxpayers in the country by foreign, mainly based in tax haven countries.
Another speaker, Executive Director of the Center For Indonesian Taxation Prastowo Justin said, the practice of transfer pricing more done in the multinational companies to minimize tax payments to the state. As a result, Indonesia has the potential tax revenue loss of up to Rp100 trillion annually.
“I think every year Rp100 trillion, the country loses a result of transfer pricing and tax planning each year,” he said.
The magnitude of the numbers obtained, according to Justin, annual data based Global Financial Integrity that explains illicit money out of Indonesia could reach Rp150 trillion annually. While most of which comes from tax evasion.
“Either through transfer pricing and tax planning,” he said.
However, he mentioned that the data should be explored to match rates between the country of origin of multinational companies with existing tariffs in Indonesia. Embezzlement practice, it is usually done foreign capital companies (PMA). This was due to tax planning in the country remains weak, so they take advantage of it.
“PMA lending to subsidiaries in the country to run the activities. Finally, the parent company can be of interest of the loan. It was supposed to be for investment,” he said.
