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Staff member at the Directorate General of Taxation at the Finance Ministry
The law ushering in a new era of the government’s ability to access financial information for tax purposes has passed its final hurdle at the House. (Shutterstock/File)
The law ushering in a new era of the government’s ability to access financial information for tax purposes has passed its final hurdle at the House. This means that banks and other financial institutions will soon start transmitting their customers’ data to the Directorate General of Taxation (DGT) on an annual basis, as well as on request.
With this law, the government hopes to expand the tax base by forcing non-compliant taxpayers to reveal their true financial affairs, report their true income, and pay their fair share of tax.
The likelihood of this law to achieve these goals depends on three factors.
First, quite obviously, the availability of data, which in turn depends on how well the government and industry can manage the security of data transmission and safeguard the huge amount of electronic data.
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data: {
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Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.
