"They must not have any doubt about participating in the program. If they are still afraid, I think they are wrong. Just follow the program properly. Declare your assets and pay the dues payable under the amnesty scheme," Sri Mulyani said.
Jakarta (ANTARA News) - Indonesian Finance Minister Sri Mulyani assured Indonesians in Singapore here on Friday that there was nothing illegal about participating in the governments tax amnesty program.

"This is a legal program and is protected by Indonesian law," she stated.

She assured the countrys tax payers in Singapore that they will not be charged with money laundering if they availed of the tax amnesty plan since it is protected by existing laws of the country.

"They must not have any doubt about participating in the program. If they are still afraid, I think they are wrong. Just follow the program properly. Declare your assets and pay the dues payable under the amnesty scheme," she added.

Responding to tax payers worries over reports that banks in Singapore would report them to the local authorities, Mulyani said she has already coordinated with Singapores deputy prime minister Tharman Shanmugaratnam regarding this issue.

She elaborated that the Monetary Authority of Singapore has appealed to the banks to encourage their wealthy clients to take the opportunity provided in the tax amnesty program and fulfill their tax obligations.

"They have stated firmly that the banks have been requested to facilitate Indonesian high wealth individuals who have accounts in Singapores banks and not create any hindrance for them," she noted.

Minister Sri Mulyani, however, admitted that banks in Singapore are obliged to report any suspicious transactions in line with the provisions of the Financial Action Task Force, especially those allegedly connected with money laundering and terrorism funding.

She reiterated that the Indonesian government would continue to coordinate and cooperate with the authorities of other countries to plug any loophole that may be used by prospective tax payers to avoid participating in the program.

"If you have any problems, you may simply let me know. I will reach across to the government concerned and talk with them. I guarantee that you will not be considered as committing an illegal act, unless you are indeed a criminal," she clarified.

Reports have emerged in various international media about the obligation of banks in Singapore to report to the local authorities any transactions made by Indonesian citizens in that country who wish to participate in the countrys tax amnesty program, triggering worries among them.

According to the data of the Tax Directorate General until September 15, 2016, total net funds and assets repatriated from abroad had reached Rp103.16 trillion with Rp14.06 trillion of them coming from Singapore.

Based on the fact, the office believed that taxpayers who have assets in Singapore did not face any obstacle and had no fear about participating in the program.

The Indonesian government has stated that it believes Singapore would not hinder its tax amnesty program.

"Yesterday, and also when they met in Laos (at the ASEAN summit), the Finance Minister (Sri Mulyani) had personally communicated with Singapore's Finance Minister, who is also the deputy prime minister, on this issue. The Singapore minister made it clear that there has been no effort to hinder the program," cabinet secretary Pramono Anung informed at the Presidential Palace here on Friday.

He stressed that all those people whose funds had been parked in Singapore and who want to participate in the program need not be afraid because it is the Indonesian law that will be applied to them in this connection.

Pramono said the amnesty payment has reached more than Rp22 trillion while assets worth Rp600 trillion in value have been declared.

"This shows that the tax amnesty program that was previously perceived with a degree of pessimism by some quarters has been proven to be working quite well. I even believe that in the next two to three days, the amnesty payment would surpass Rp30 trillion," he observed.

Pramono said the program would not only expand the tax base but would also support the governments programs in the future at a time when the world is still continuing to experience an economic slowdown.(*)

Editor: Heru Purwanto
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