At DPR Sri Mulyani Discusses Potential Global Taxes Lost Rp.3,360 Trillion Due To BEPS

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani revealed that the potential lost global tax revenue due to the erosion of the tax base or Base Erosion and Profit Shifting (BEPS) reached IDR 3,360 trillion per year.

"The tax base of all countries has been eroded because of the dynamics of inter-state activities with the facilitation of the digital economy," Sri Mulyani said at a Working Meeting with Commission XI of the House of Representatives (DPR) in Jakarta, reported by Antara, Monday, September 13.

He explained that globalization and the development of information technology have brought about fundamental changes to the global and Indonesian economic systems, cross-border transactions, and digital economic transactions that have increased very dynamically.

Research in 2008 showed that the BEPS practice was carried out by taking advantage of the issue of bank secrecy and the issue of differences in income tax rates (PPh) or race to the bottom, in many countries or jurisdictions.

"The tax reform agenda in Indonesia is also influenced by conditions and changes in global dynamics, especially the emergence of digital technology," said Sri Mulyani. operate in a variety of jurisdictions.

Thus, these various issues prompted the leaders of the G-20 countries and the Organization for Economic Cooperation and Development (OECD) to formulate and agree on 15 BEPS Action Plans in 2015.