Sri Mulyani is optimistic that global minimum tax will prevent tax evasion, DDTC says

medialnews – JAKARTA. Finance Minister (Menkeu) Sri Mulyani Indrawati has expressed support for the global alcohol tax proposed by the United States government. According to Sri Mulyani, this method can prevent tax evasion that is commonly practiced by multinational companies.

“So the efforts of all countries must be global, because if it’s not global, there will be a country / jurisdiction to take it. advantage don’t follow the standard. If the United States and the OECD countries all participate, it will have a positive, fair and certain impact, ”the Minister of Finance said at the press conference on the realization of the state budget on Thursday ( 22/4).

In practice, tax evasion will hurt government revenue. Tax Justice International in reports The state of tax justice revealed the potential for corporate tax evasion in Indonesia to reach US $ 4.78 billion, or about Rs 69.31 billion (rupee exchange rate 14,500 Rp) in one year.

Danny Darussalam Tax Center (DDTC) tax observer Bawono Kristiaji said the minister’s statement was correct. Indeed, the global minimum tax is part of the second pillar of the digital tax proposal which emphasizes efforts to prevent practices base erosion.

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The idea is to guarantee a minimum effective tax rate paid by multinational companies everywhere in the place of operation. So, with the minimum effective tax rate, Bawono said the decision to operate in other countries was not too influenced by high and low tax rates.

“Thus, tax avoidance practices – for example, the diversion of profits to the state with a low corporate tax rate will be reduced,” Bawono told Kontan.co.id, Friday (23/4) .

In general, Bawono said the idea would certainly ensure better tax revenues and could encourage multinational companies to carry out larger economic activities at their operational sites.

Also read: Minister said the potential of Indonesia’s digital economy could reach US $ 124 billion

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