The governments of Indonesia and Switzerland have declared their readiness to implement the Automatic Exchange of Information.
The signing of the joint declaration was undertaken by Director General of Taxes, Ken Dwijugiasteadi, and Swiss Ambassador to Indonesia, Yvonne Baumann.
Finance Minister Mulyani stated that it was important for Indonesia to be able to implement AEOI with Switzerland as it was one of the largest financial centers in the world, local media reported.
Ongoing Tax Hunt
Indonesia has been trawling financial centres for offshore funds and following the closure of its domestic tax amnesty recently signed an agreement with Hong Kong.
The alliance will see the pair share financial information giving the Indonesian tax office access to data on taxpayers who have accounts in north Asia's wealth management hub.
Offshore Assets
«Financial information obtained from Switzerland and nearly 100 other countries will be used as a tax database to test the compliance rate of taxpayers. It is expected to encourage their awareness to fulfill tax obligations voluntary, especially in reporting their earnings and financial assets abroad which have not been reported,» said Mulyani.
Through the joint declaration, Indonesia and Switzerland agreed to exchange financial account information automatically in accordance with the Common Reporting Standard (CRS) starting from 2018, with the first exchange in 2019, protected by data security assurance according to international standards.
