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DDTC Working Paper 1717
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                      analysts and academic researchers under strict   activity.  The same case could also apply for tax
                      confidentiality and access requirements.      audit information. These two sources contain rich
                   4.  Increased data consistency across countries.  information that have potential in enhancing BEPS
                                                                    research advancement.
                   5.   More timely information with shorter time lags.
                      Regarding current  available  data,  restricted   Besides standardizing the data in the electronic
                   access  – even among between government          system, the mechanism of collecting  data  from
                   institutions – is one of the constraint. For instance,   inside  should  involve  searching  for  specific
                   the  DGT  already  collect  a  set  of  information   data  item and then sorting into standardized
                   regarding the tax affairs of MNEs and their affiliates.   categories. It would help to assist data processing
                   This kind of information is certainly a useful data   for government analyst or researcher, and enable
                   source, as it contains rich information about MNEs   them to conduct necessary  research. For further
                   reported  tax  payment, assets  and other  related   betterment, FPA then could make advice  or
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                   information.  But  similar  like most countries,   recommendation for the DGT to add information
                   these  documents  are  strictly  confidential.  The   column in the tax return to be filled by MNEs, so
                   information collected is pooled internally for   that the research and analyses could be preserved
                   the principal function of  tax  administration and   to keep developing and generate more insightful
                   government tax policy consideration and advice. It   analysis about BEPS practices.
                   could be beneficial if these information utilization
                                                                       Given the large and expectedly soon-to-be
                   could also be expanded for restricted research
                                                                    expanded data base in the DGT, it is vital for every
                   purpose.
                                                                    government units related in policy formulation
                      Since policy formulation is formally held by FPA,   to work more closely together  to make better
                   which is a separated government unit from the DGT,   use of data that is already collected. In particular,
                   such analyses with proper data provision is rarely   statistical  analyses based upon  data  collected
                   done.  FPA has access to data held in the DGT, but it   under the comprehensive reporting by MNEs
                   should be done through permission granted by the   under PMK/213/2017 should be utilized as it can
                   Minister of Finance, causing inefficiency in the data   boost the economic analyses of BEPS.
                   flow and create risk that some simple but crucial
                   data are not shared. Contrariwise, the DGT would   5.3.  Planning for  Comprehensive Set of
                   also  find  difficulties  to  arrange  comprehensive   Researches: A Preliminary Suggestion
                   BEPS  analyses, since they do not  have necessary
                                                                       Along with the importance of  data provision,
                   non-tax data that is provided in other government
                                                                    a  systematic  plan  for  conducting  sufficient  set
                   units.
                                                                    of  researches  is  equally important. Setting  the
                                                                    plan  could be done in many ways. But  taking
                      It  would  give  huge  benefit  if  access  to  those
                                                                    aside  consideration on how the most ideal plan
                   data,  particularly detailed tax  return data,  is
                                                                    should be, the essence  is for policy makers  to
                   automatically granted to FPA without the provision
                                                                    map a directed and proactive framework that
                   of direct instruction from the Minister of Finance.
                                                                    could provide  tactical  platform,  through which
                   OECD  offers  solution  that  current  available  data
                                                                    both  insightful  and  applied  knowledge about
                   should  be compiled into an electronic database
                                                                    BEPS can be continuously generated to help BEPS
                   that  is accessible by other government units.
                                                                    countermeasures advancement.  This prerequisite
                   Practically, the DGT is advised to make electronic
                                                                    is  vital,  since  BEPS  behavior  is  not  a  static  field,
                   filing  of  corporate  tax  returns  within  which  the
                                                                    whose  embodiments  are  already given and only
                   provided information is systematically structured
                                                                    need to be explored. On the contrary, since BEPS
                   and easy to be accessed for research purpose.
                                                                    behavior  is  basically  cultivated  by  profit  motive,
                      Additionally,   OECD   also   suggests   that   it will  continually adapt  and modify  its forms
                   these  complied  data and documents  done  to    depending on how related determinants are fused
                   be transformed  into  aggregated  tabulation     in forming the future business landscape.
                   with anonymous identity that  can be used  for
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                   identifying BEPS  practices.  Another solution      What  we could at  least  expect  is  that  the
                   was also proposed by UN (2013), suggested that   complexity of current BEPS behavior will only get
                   the government  need to develop  special unit    even more compound and multifaceted with  the
                   in international  taxation  for monitoring BEPS   increasing integration of business across countries
                                                                    and the role of technology. In addition, changes in tax
                                                                    system abroad due to tax reform implementation
                   53. Michael McDonald, “Income Shifting from Transfer Pricing: Further
                   Evidence from Tax Return Data”, OTA Technical Working Paper No. 2   55. See UN, United Nations Practical Manual on Transfer Pricing for
                   (2008): 11.                                      Developing  Countries  (New York: UN,  2013), 83-111 as quoted in
                   54. OECD, Measuring and Monitoring BEPS: Action 11 – 2015 Final   B.  Bawono  Kristiaji, “Incentives and Disincentives of  Profit Shifting in
                   Report (Paris: OECD Publishing, 2015): 249-260.  Developing Countries”, Master Thesis for Tilburg University (2015): 89.
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