Indonesia, Switzerland to Exchange Financial Data in 2019

Indonesia, Switzerland to Exchange Financial Data in 2019


Jakarta — Indonesia has signed an agreement on information sharing with Switzerland, allowing the Directorate General of Taxes to access data on foreign bank accounts owned by Indonesian citizens. Switzerland is one of the tax haven countries, along with Singapore, Hong Kong and Mauritius, where rich Indonesians keep their assets. On Tuesday (04/07), the director general of taxes, Ken Dwijugiasteadi, signed a joint agreement with Swiss Ambassador Yvonne Baumann on the information exchange to start in 2019. “[What is] important for Indonesia is to be able to automatically exchange data with Switzerland, as the country is one of the world’s biggest financial centers,” a statement from the Directorate General of Taxes said. Indonesia managed to take more than 900,000 declare their previously unreported assets during the government’s nine-month amnesty program. Most of the assets previously stashed abroad came from Singapore, Virgin Islands, Cayman Islands, Hong Kong and Australia. On June 16, the tax office signed a bilateral competent authority agreement with Hong Kong’s Commissioner of Inland Revenue Department to gain access to Indonesian taxpayers’ data in Hong Kong. Finance Minister Sri Mulyani Indrawati said on Tuesday the government is going to have similar agreements with other strategic countries, including the United Kingdom, the United States and Australia. The agreements are now possible after the government issued a regulation in May, scraping bank secrecy in an effort to comply with the global Automatic Exchange of Information (AEOI) framework to prevent large-scale tax evasion.

Source: thejakartaglobe