Page 16 - Working Paper (Measuring BEPS and Its Countermeasures in Indonesia: A Preliminary Research Guide)
P. 16

DDTC Working Paper 1717

                                           Table 3. Data Classification Assessment in Indonesia

                                 Type of Data                  Availability                 Accessibility
                        National accounts            Available in Central Bank of  Accessible
                                                     Indonesia (BI)
                     Macro Data  Balance of payment  Available in BI               Accessible

                                                     Available in Ministry of Trade
                        Trade data
                        Foreign direct investment (FDI)
                                                                                   Accessible, but incomplete
                        Corporate Income Tax (CIT) revenue  Available in IMF       Accessible
                                                     Available in Ministry of Finance
                        Corporate financial information  Available                 Available,  but costly.  There  are
                                                                                   useful data base including ORBIS,
                                                                                   Bloomberg, Oriana and Osiris.
                                                                                   However, these databases have
                                                                                   different reporting requirements  for
                                                                                   accounting  and tax purposes, and
                                                                                   coverage is not extensive, particularly
                     Micro Data  Corporate tax return information  Available (collected and managed by  Not accessible
                                                                                   for Indonesia.

                                                     Available (collected and managed by  Not accessible
                        Audit information            DGT)
                        Custom and excise data       Available (collected and managed by  Not accessible
                                                     Directorate General of Customs and
                                                     Excises (DGCE))

                   and information are both crucial in developing the   BEPS practices from real asset allocation. FDI data
                   feasible research.                               is also preferable to be used, but researchers would
                                                                    get  difficult  in  distinguishing  profit  shifting  from
                   5.1. Existing Data and the Relevance
                                                                    normal transfers. UNCTAD (2015) identified profit
                                                                    shifting only by limiting the scope of only FDI flow
                      Presently, there are not many options for
                                                                    that are using tax haven jurisdictions as the hubs of
                   Indonesia  to  measure  BEPS.  Currently  available
                                                                    the FDI flow.
                   data are  mainly macro  data, while  micro  data
                   are still very limited. Corporate tax revenue, FDI,
                                                                       The  most useful and practical  data  source
                   current account, and trade data are the ones that
                                                                    comes  from micro data,  which  provides  more
                   are obtainable.  These  elementary  data  can  still
                                                                    detail information which can be adapted to many
                   be utilized to conduct preliminary research, but
                                                                    form of research objectives. Accordingly, the most
                   further effort is certainly required to develop
                                                                    currently  feasible  data  is  corporate  financial
                   the  findings  and  expand  the  knowledge.  Table
                                                                    information data. It could be utilized to measure
                   3  summarize  data  classification  assessment  in
                                                                    MNEs behavior in terms of profit reporting, asset-
                                                                    to-debt ratio, intra-firm pricing, or other potential
                                                                    indicators from  which researcher can  grasp
                      A  well  classified  data  will  help  policy  makers
                                                                    knowledge about  BEPS and its countermeasures
                   as well as policy researchers to  utilize existing
                   tools and develop  a  structured research plan.
                   Useful relevant recommendations  could be made
                                                                       Information from corporate tax return and audit
                   regarding data and monitoring tools for the future
                                                                    store huge potential for research advancement, but
                   may involve matters both within the domain of tax
                                                                    allowing such feasibility is complicated and need
                   policy and tax administration and the coordination
                                                                    huge  effort.  Confidentiality  regarding  the  use  of
                   of these units with  related institutions  who hold
                                                                    taxpayers’ information is regulated in Article 34 in
                   and  manage  databases  that  are important  to the
                                                                    The General Tax Provisions and Procedures Law. It
                   fruitfulness of the research efforts.
                                                                    would  need comprehensive consideration  about
                                                                    opening the possibility to  use such  information
                      Concerning  macro  data,  out  of  five  choices
                                                                    for limited research purpose. The same case also
                   above, CIT revenue is the one that is the most used
                                                                    applies to custom and excise data, which contain
                   in  measuring  BEPS.    CIT  revenue  represents  the
                                                                    potential use to identify or measure profit shifting
                   impact BEPS practices more directly, which allows
                   researcher  easier  to  put  effort in differentiating
   11   12   13   14   15   16   17   18   19   20   21