Indonesian Tax System

gemima

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Jul 25, 2016
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With CRS in place, this is going to be much more common.

Essentially you become one identity for all CRS participating countries, and they link all your TINs.

Since they are working in Indonesia they probably at some point provided the Indonesian TIN to UK authorities. Probably to establish Indonesian tax residency. In turn UK banks reported account balances to Indonesian tax office.

Since they file taxes in Indonesia, and you are to report all assets (foreign and local) in your tax return every year, some mismatch due to missing account balances become trivial to discover.

It is then up to you to explain the discrepancy.
Yes, and I recall my accountant from my home country requested my NPWP last year when I filed by taxes.
 

jstar

Mr. 10,000
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Jul 31, 2016
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4,304
I think the tax authorities do get to see this info:
"The Common Reporting Standard (CRS) is an information standard for the Automatic Exchange Of Information (AEOI) regarding bank accounts on a global level, between tax authorities, which the Organisation for Economic Co-operation and Development (OECD) developed in 2014. Its purpose is to combat tax evasion."
It's definition refers to "tax authorities".
However, I am not a tax expert and I really know nothing about this beyond some googling :)

I meant that the Pajak Office of a country gets all info from the Financial Institutions, not the Registry. So it’s all about financial transactions and possessions, not about real estate.

But of course there is a single channeling per country, per individual, provided to the tax authorities of other CRS member states. Sorry for the confusion.

But in the Netherlands for instance, the government made it very clear that before CRS countries actually start to exchange information, they must make further agreements. For example about the protection of personal data with aid from the Organization for Economic Co-operation and Development (OECD). This is already in place for the EU member states, but Indonesia was not included.

So @gemima , I could be wrong but I start to believe that your example is not based on CRS data? Perhaps they knew from other sources?
 

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