Tax Ratio Low, Can Be This causes

AKARTA, KOMPAS.com – Deputy for International Economic Cooperation CMEA Rizal Afandi Lukman suspect there Base Erotion and Profit Shifting (BEPS) among multinational companies. The reason, he saw the discrepancies between the income tax with revenues of GDP. “During this time the tax ratio we always low, even up to 12 percent. There may be a practice Base Erotion and Profit Shifting,” said Rizal in Building Energy, Jakarta Sleasa (14/12/2015). BEPS is a phenomenon in which a multinational company take advantage of cross-border activities (cross border activity) to avoid taxes in a country. The modus operandi was usually to get revenue to the corporate office in another country. Thus, the tax they have to pay is the state tax in their offices are located. “For example a company plant in Indonesia ran its revenues into office in Singapore. It makes them pay taxes to Singapore not to us,” said Rizal. He explained, BEPS is reasonable -akalan companies to choose the least expensive state tax. “Companies definitely choose the lowest tax state,” said Rizal. The impact is on the tax ratio Indonesia were lower. Because on the one hand the company undertake production activities in Indonesia, on the other hand they do not contribute to the tax. “They production here, they contribute to GDP, but the tax contributions they have nothing,” said Rizal. Rizal added that there is currently Nothing specifically regulate this. Thus, these companies can not be said to violate the rules. “We can not get anything, because when in the financial statements of these companies emang office in Singapore anyway,” said Rizal. “We must learn to countries that the audit has been implementing ways to avoid the practice of profit-shifting (BEPS), “said he added.