Sri Mulyani: Indonesia Ready to Implement Financial Information Exchange
Finance Minister, Sri Mulyani, says that Indonesia continues to make preparations for implementing exchange of information in financial services and taxation sectors like alignment of the rules in the Law on the General Rules and Procedures of Taxation (KUP).
“We will try various ways to incorporate various articles for KUP Law so that access to information for taxation affairs can be reinforces, thus we can meet the requirements in the AEOI,” she said, Wednesday (2/22/2017).
Sri Mulyani, as quoted by Antara, explained things that still need to be coordinated to support the financial services information exchange or ‘Automatic Exchange of Information’ (AEOI) is the regulation on banking.
She said the Law still includes a clause that protects the confidentiality of customer data. “What might be something that is very complicated is that the Law on banking, Sharia and capital market, in fact mentions, articles on customer confidentiality are still there,” she explained.
Sri explained that the AEOI implementation is to ensure every country that states participating in the program can have access to personal information in a transparent manner regarding financial services or taxation in a region.
She explained AEOI policy is a global program that is agreed upon by 101 countries to jointly provide information, in particular transparent information on taxation.
A number of countries which are the members of the G-20 and the Organization of Economic Cooperation and Development (OECD) through the AEOI agreed that employers should no longer commit fraudulent practices of tax evasion.
Earlier in a closed meeting, President Joko “Jokowi” Widodo has emphasized to ministries and state institutions to avoid overlapping regulations overseeing information disclosure exchange in financial services and taxation sectors.
“Application of AEOI must be used as a momentum for reforming Indonesia’s financial information system, including improvements to taxation information system,” the president said.
