Tax Amnesty, Indonesia vs Singapore 'Bharatayuda War'

ELVIPS.COM - Indonesians have declared about 117.3 trillion rupiah (S$12 billion) in assets held in Singapore under Jakarta's tax-amnesty scheme. The amount represents three-quarters of all foreign assets declared under the programme, which was pushed through by Parliament in June this year.

The share of assets declared by Indonesian citizens in Singapore was released by Indonesia's Finance Ministry on Friday (16/9).

"As much as 76.14 per cent of total repatriated funds and 74.51 per cent of total declared foreign assets were from Singapore. This fact indicates that, contrary to some reports, Indonesians with assets in Singapore are willingly participating in the amnesty," a ministry spokesman added.

Quoting Denny Siregar, an activist social media in this weekend, Tax Amnesty 'war' in this class is not just a village war or a war between biker gangs.

"This is Bharatayuda war, where the fighting is two countries. Full of strategies and measures the level of world diplomacy. So it is not very easy. You just shouted, where his money, where his money? But do not ever want to understand the situation," said Denny said Denny as written in his blog.

Continuation, Singapore is currently panic with the situation created due to the policy of tax amnesty Indonesia. As an illustration, a citizen of Indonesia has assets of about $200 billion in private banks Singapore or a total of 40 until 60 percent of their banking assets.

"You can imagine, what happens when the assets were withdrawn to Indonesia? Obviously panic in the banking sector and the economy of Singapore. Many stocks will fall, although surely they will be supported by members of other Commonwealth countries," explained Denny.

One trick Singapore to prevent large funds have pulled back to Indonesia is to scare their clients. Anyone who participated suspected tax amnesty program to save money forbidden in Singapore.

Commercial Affairs Department (CAD), Singapore Police unit that takes care of financial crimes, reportedly has sent a letter to all banks of Singapore that any of their customers who join the program are required to report tax amnesty.

"CAD is suspected to worry there are potentially criminal financial transactions if there is a request for mercy taxes. Funny, they used the money where aja time entered Indonesia flocked to Singapore? If you want out, then get all excited," said Denny again.

Although not in accordance with the target, but at least the facilities provided by the government this time containing honey poisons for employers, would be forgiveness or sanctions? Anyone doing business in Indonesia certainly understand, this time the president is not messing around, let alone its current Finance Minister Sri Mulyani.

"It's terrible this program. For the first time the names of large employers come to their own tax office to report their assets. From James Riady, owner Lippo, Tohir brothers until Tommy flocked and report their assets totaling trillions rupiah, "he continued.

To be known, if all goes to plan, 1,000 trillion rupiah is expected to be repatriated from overseas and invested locally. It will also add 165 trillion rupiah to local tax coffers.

Reuters reported on Thursday that private banks in Singapore were tipping off white-collar police with the names of clients applying for Jakarta's tax-amnesty scheme.

The Monetary Authority of Singapore (MAS) said in response to media queries that while banks in the Republic are required to file a suspicious transaction report when handling tax-amnesty cases, it does not necessarily mean that the client will be investigated by the police.

In Singapore, banks are required to adhere to the Financial Action Task Force (FATF) standard of filing a suspicious transaction report  when handling tax amnesty cases, similar to the practice in other jurisdictions, the MAS says.

The news agency report also prompted Indonesian Finance Minister, Sri Mulyani Indrawati and her ministry to assure taxpayers that "MAS has advised banks in Singapore to encourage their clients to use the opportunity accorded by tax-amnesty programmes to regularise their tax affairs".

"I have directly checked with the Singapore authorities, specifically Deputy Prime Minister Tharman (Shanmugaratnam) to get an official explanation from the Singaporean Government," said Sri Mulyani at Jakarta, recently.

So far, 528 trillion rupiah worth of assets - at home and abroad - have been declared, with the amount being repatriated substantially lower.

For instance, of the total amount of Singapore based assets declared, only 14.1 trillion rupiah will be repatriated by Indonesian taxpayers.

source: http://en.sindonews.com/read/1140200/196/tax-amnesty-indonesia-vs-singapore-bharatayuda-war-1474166741/2