Indonesia asks G20 to implement taxation cooperation

Indonesia asks G20 to implement taxation cooperation

Bambang Brodjonegoro. (ANTARA/Fanny Octavianus)

Jakarta (ANTARA News) - Indonesia has asked the worlds 20 biggest economies (G20) to implement the international taxation cooperation on time based on the agreement that has been reached.

The Ministry of Finance said in a written statement here on Sunday that Indonesia made the appeal in the G20 Finance Ministerial and Central Bank Meeting in Shanghai, China, on February 26-27, 2016.

In the G20 meeting, Indonesian Finance Minister Bambang Brodjonegoro gave a spot light on the challenges faced in the implementation of the international taxation cooperation, particularly the Base Erosion and Profit Shifting (BEPS) initiative and the Automatic Exchange of Information (AEOI) on taxation.

Minister Bambang hoped that the agreed deadline for the implementation of the AEOI would have been completely implemented by 2017 for early adopter countries and by 2018 at the latest.

He also hoped that no countries would ask for exception from the AEOI implementation.

The minister also stressed the importance for G20 to fight against financial engineering by institutions in worlds financial centers which tried to avoid business transparency and hid the ultimate beneficial owners.

Indonesia also pointed out the importance for all countries in the world to not compete in lowering tax tariffs to a possible lowest and unsound level, forgetting the urgency of increasing state revenues as a strategy to support growth in the future.

The G20 ministers held their first meeting under the leadership of China on February 26-27, 2016.

Held in Shanghai, the meeting discussed the latest global economic developments, taxation cooperation, investment on infrastructure, global financial regulation reforms, international financial architect, terrorism financing issues and climate change.