Jakarta – The Indonesian government has decided to revise its plan to examine financial data on the back of major outcry from micro, small and medium enterprises (MSME).
The government, through the Tax Office, only requires those with bank accounts with a minimum balance of Rp 1 billion (US$75,148.50) to be subjected to the scheme, higher than the initial plan of Rp 200 million.
The Finance Ministry said in a statement that the revision was made after heeding feedback from related stakeholders "so the policy would be more reflective of the principle of fairness."
"This policy shows preferential a option for MSME while taking into account easier administrative work for financial institutions to implement the policy," the statement said.
With the new ruling, the number of bank accounts subject to tax examination will stand at around 496,000, or 0.25 percent of total accounts, far lower than the initial target of around 2.3 million bank accounts with a minimum balance of Rp 200 million.
The ministry also asserted that the tax examination is aimed at collecting more comprehensive information in accordance with international standards so that Indonesia could take part in financial information exchanges with other countries.
Indonesia along with 105 other countries have committed to enforcing broader access to taxpayers' financial accounts to fulfill the compulsory reporting standards within the Automatic Exchange of Information (AEOI) portal between tax authorities next year, as part of efforts to fight tax avoidance and evasion.
The ministry promised to hand legal sanctions to tax officers who are found to use or leak taxpayer information for purposes other than tax compliance, the statement added. (dmr)