Tax authorities should conduct more effective analysis of financial transaction information to detect tax leak gaps and reduce tax avoidance practices

Oct 13, 2025 by talynt.org 24 views

The Development of Bank Secrets in the Interests of Taxation in the Era of Automatic Information Exchange (AEOI)

Introduction

In the current financial scenario, banks as financial service institutions have a significant responsibility for customer trust. This trust requires banks to maintain the confidentiality of customer data in accordance with applicable regulations. However, this confidentiality can also be used by certain parties to hide illegal income, so as to avoid tax obligations. In this context, the tax authority requires access to analyze the record of taxpayer financial transactions, in order to detect tax leak gaps that are detrimental to the state.

The Role of Government Regulation in Lieu of Law (Perpu) No. 1 of 2017

The presence of Government Regulation in Lieu of Law (Perpu) No. 1 of 2017 is a significant step to overcome this problem. This Perpu provides a legal basis for the authorities to access the financial information of bank customers in the interests of taxation. The aim is to protect the public interest, especially in increasing tax revenue from domestic and foreign sources. The implementation of Perpu No. 1 of 2017 is a crucial step in ensuring that banks play a more active role in supporting the government's efforts to increase tax revenue.

The Development of Automatic Exchange of Information (AEOI)

With the development of automatic exchange of information (Automatic Exchange of Information/AEOI), Indonesia is preparing to carry out global initiatives aimed at gathering financial information on Indonesian taxpayers who store assets abroad. This is an international effort to fight tax practices that are detrimental to the country, which is often done in countries with low tax systems or tax haven. The implementation of AEOI is expected to improve tax administration and reduce tax avoidance practices.

The Importance of Bank Confidentiality in the Context of Taxation

In writing this thesis, the authors use normative legal research methods with a library study approach. This method focuses on collecting secondary data needed, including primary, secondary, and tertiary legal materials related to the issues discussed. Through this research, it was revealed that the development of bank confidentiality in the context of taxation not only serves to protect customers, but also to maintain public welfare through better tax revenue. The development of bank confidentiality is a crucial aspect of taxation, as it ensures that taxpayers are held accountable for their financial transactions.

The Impact of AEOI on Tax Administration

Along with the implementation of AEOI, Indonesia will certainly experience improvement in tax administration. Access to financial transaction information can assist tax authorities in conducting more effective analysis, so as to reduce the practice of tax avoidance. Thus, this effort is expected to increase taxpayer compliance, which in turn contributes to the country's economic stability. The implementation of AEOI is expected to improve tax administration and reduce tax avoidance practices.

Conclusion

In conclusion, the development of bank secrets in the aeoi era is not just a matter of customer privacy, but also closely related to the public interest and the sustainability of the national economy. With the steps taken through Perpu No. 1 of 2017, it is hoped that Indonesia will be able to optimize tax revenue and fight the practice of tax avoidance, as well as building a more just and transparent taxation system. The development of bank secrets in the aeoi era is a crucial aspect of taxation, as it ensures that taxpayers are held accountable for their financial transactions.

Recommendations

Based on the research findings, the following recommendations are made:

The government should continue to implement Perpu No. 1 of 2017 and AEOI to improve tax administration and reduce tax avoidance practices.
Banks should play a more active role in supporting the government's efforts to increase tax revenue by providing access to financial transaction information.
Tax authorities should conduct more effective analysis of financial transaction information to detect tax leak gaps and reduce tax avoidance practices.

Limitations of the Study

This study has several limitations, including:

The study only focuses on the development of bank confidentiality in the context of taxation and does not explore other aspects of taxation.
The study only uses secondary data and does not conduct primary research.
The study only focuses on the implementation of Perpu No. 1 of 2017 and AEOI in Indonesia and does not explore the implementation of these regulations in other countries.

Future Research Directions

Future research should explore the following directions:

The impact of Perpu No. 1 of 2017 and AEOI on tax administration and taxpayer compliance.
The role of banks in supporting the government's efforts to increase tax revenue.
The implementation of Perpu No. 1 of 2017 and AEOI in other countries and its impact on tax administration and taxpayer compliance.

References

Government Regulation in Lieu of Law (Perpu) No. 1 of 2017.
Automatic Exchange of Information (AEOI) Agreement.
Tax Authority Regulation No. 1 of 2018.
Bank Regulation No. 1 of 2019.
Various academic articles and books on taxation and bank confidentiality.
Frequently Asked Questions (FAQs) on the Development of Bank Secrets in the Interests of Taxation in the Era of Automatic Information Exchange (AEOI)

Q1: What is the purpose of the Automatic Exchange of Information (AEOI) agreement?

A1: The Automatic Exchange of Information (AEOI) agreement is an international effort to fight tax practices that are detrimental to the country, which is often done in countries with low tax systems or tax haven. The agreement aims to improve tax administration and reduce tax avoidance practices by providing access to financial transaction information.

Q2: How does the Government Regulation in Lieu of Law (Perpu) No. 1 of 2017 support the implementation of AEOI?

A2: The Government Regulation in Lieu of Law (Perpu) No. 1 of 2017 provides a legal basis for the authorities to access the financial information of bank customers in the interests of taxation. This regulation supports the implementation of AEOI by ensuring that banks provide access to financial transaction information.

Q3: What is the role of banks in supporting the government's efforts to increase tax revenue?

A3: Banks play a crucial role in supporting the government's efforts to increase tax revenue by providing access to financial transaction information. Banks are required to report financial transaction information to the tax authorities, which can assist in detecting tax leak gaps and reducing tax avoidance practices.

Q4: How does the development of bank confidentiality in the context of taxation impact taxpayer compliance?

A4: The development of bank confidentiality in the context of taxation can impact taxpayer compliance by ensuring that taxpayers are held accountable for their financial transactions. By providing access to financial transaction information, taxpayers are more likely to comply with tax laws and regulations.

Q5: What are the benefits of implementing AEOI in Indonesia?

A5: The benefits of implementing AEOI in Indonesia include:

Improved tax administration and reduced tax avoidance practices
Increased taxpayer compliance
Improved economic stability
Enhanced transparency and accountability in taxation

Q6: How does the implementation of AEOI impact the banking industry?

A6: The implementation of AEOI can impact the banking industry by:

Increasing the burden of reporting financial transaction information
Requiring banks to invest in technology and infrastructure to support the reporting process
Potentially increasing the risk of data breaches and cyber attacks

Q7: What are the challenges of implementing AEOI in Indonesia?

A7: The challenges of implementing AEOI in Indonesia include:

Ensuring the accuracy and completeness of financial transaction information
Addressing the technical and infrastructure requirements for reporting financial transaction information
Ensuring the security and confidentiality of financial transaction information

Q8: How can taxpayers ensure compliance with tax laws and regulations?

A8: Taxpayers can ensure compliance with tax laws and regulations by:

Maintaining accurate and complete financial records
Reporting financial transaction information to the tax authorities
Seeking professional advice from tax consultants or accountants

Q9: What are the consequences of non-compliance with tax laws and regulations?

A9: The consequences of non-compliance with tax laws and regulations can include:

Fines and penalties
Interest on unpaid taxes
Loss of business reputation and credibility
Potential criminal prosecution

Q10: How can the government ensure that the implementation of AEOI is effective and efficient?

A10: The government can ensure that the implementation of AEOI is effective and efficient by:

Providing clear guidelines and regulations for the reporting process
Ensuring that the tax authorities have the necessary resources and infrastructure to support the reporting process
Conducting regular audits and reviews to ensure compliance with tax laws and regulations.