Indonesia Passes Law to Chase Tax Evaders Overseas
- New law to fulfill requirements under OCED’s AEOI framework
- Move could unlock billions of dollars of assets kept abroad
The law paves the way to ramp up tax collection by getting better access to information on any assets parked in jurisdictions such as Singapore and Hong Kong.
Photographer: Sanjit Das/BloombergIndonesia moved a step closer to hunting down tens of billions of dollars it believes its citizens have hidden abroad after political parties agreed to seek a parliamentary approval for a law that will give tax officials access to financial data held by other countries.
A meeting of various political parties on Wednesday agreed to seek the parliament approval to turn an emergency rule in lieu of law, known as perpu, into a law at a plenary session on Thursday, said Johnny G. Plate, a lawmaker and member of Commission XI. The law will fulfill a requirement for Indonesia to participate under the Organisation for Economic Co-operation and Development’s Automatic Exchange of Information framework.