FFD- Isu Pajak

Sugeng Bahagijo, INFID

sbahagijo@infid.org

Bahan sharing utk IESR. 26-4/15

Daftar Isi

1. Konteks Kebijakan

2. Isu Pajak

MASALAH PAJAK INTERNASIONAL-ILLICIT FINANCIAL FLOW-TRANSFER PRICING-TRADE MISINVOICING (INVOICE FRAUD)

Masalah Illicit Illegal Flow (IIF)

• Aliran dana illegal keluar (IIF) dari negara2 berkembang : 1 Triliun Dolar

• Jauh lebih besar ketimbang aliran dana masuk (FDI + ODA) ke negara berkembang

• Trend meningkat- meninggi 3 kali selama 2003-2012.

[http://www.gfintegrity.org/addressing-illicit-financial-flows-in-the-financing-for-development-ffd-and-sustainable-development-goal-sdg-processes/]

UN Technical paper 2013• “..Broad based national and international

initiatives are required to curb illicit outflows of resources. Domestic resource mobilization is being severely undermined by illicit financial flows” (p.7)

• UNTT Working Group on Sustainable Development Financing Chapter 2 The variety of national, regional and international public sources for development financehttps://sustainabledevelopment.un.org/content/documents/2101Chapter%202-variety%20of%20public%20sources%20for%20development%20finance.pdf

Masalah Pajak

• “However, in the current globalized world, there is increasing evidence of the difficulties of delinking national solutions from global efforts in the fight against illicit financial flows that have been draining over $ 50 billion a year from African coffers over the last decade.”-Eighth Joint Annual Meetings of the African Union Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration and the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development Addis Ababa, 23 and 24 March 2015

OECD-G20 BEPS Action Plan• ACTION 1- Address the tax challenges of the digital economy• ACTION 2- Neutralise the effects of hybrid mismatch arrangements• ACTION 3- Strengthen CFC rules• ACTION 4 -Limit base erosion via interest deductions and other financial payments• ACTION 5 -Counter harmful tax practices more effectively, taking into account

transparency and substance• ACTION 6 - Prevent treaty abuse• ACTION 7 - Prevent the artificial avoidance of PE status• ACTIONS 8, 9, 10 -Assure that transfer pricing outcomes are in line with value

creation• ACTION 11 -Establish methodologies to collect and analyse data on BEPS and the

actions to address it• ACTION 12 Require taxpayers to disclose their aggressive tax planning

arrangements• ACTION 13 Re-examine transfer pricing documentation• ACTION 14 Make dispute resolution mechanisms more effective• ACTION 15 Develop a multilateral instrument

FFD Zero draft (UN)

The draft proposes three specific steps to address IFFs, including:

1. Developing “a proposal for an official definition of IFFs”,

2. Developing “a proposal to publish official estimates [of IFF] volumes and breakdown,” and

3. An international effort to “substantially reduce” the flow of IFFs.

Usulan akademisi Int. ASAP Study- 2014

1) Disclosure of the ultimate beneficial owners of companies, and of the controlling parties of trusts and foundations

2) Reform international tax rules so that the taxable profits of multinational corporations are aligned with the location of their economic activity

3) Require public reporting of funds paid to governments for the sale of natural resources such as oil, gas, metals, and minerals, and the use of those funds

4) Significantly increase developing country tax authority capacity5) Implement automatic exchange of tax-relevant financial information on a global basis

6) Implement public country-by-country reporting for multinational corporations7) Require that all governments carry out clear, reliable, frequent, and timely public fiscal reporting

and that governments’ fiscal policy-making process be open to public participation

8) Increase capacity building, training, and resources for law enforcement for work on financial sector investigations

9) Impose tougher sanctions, including jail time, on professionals who facilitate illicit financial flows, e.g. senior officers from global banks, accounting firms, law firms, insurance firms, and hedge funds

10) Harmonize anti-money laundering regulations internationally.

Cobham Paper 2014-Under the current system of separate accounting, tax-motivated international profit shiftingresults in misalignment of profits and real economic activity. While the Organisation forEconomic Co-operation and Development (OECD) Base Erosion and Profit Shifting initiativeaims to measure and curtail this, critics claim serious progress is only possible with greateremphasis on formulary apportionment methods (Picciotto 2013), or other methods outsidethe present international tax architecture (IMF 2014).

In this paper we use the leading global database of company balance sheets to compare the distribution of profit and potential apportionment factors. Although data coverage is problematic for developing countries, we find that apportioning profit according to measures of actual economic activity would result in a major redistribution of the tax base at the expense of a particular group of jurisdictions, and in most cases towards the lower-income countries in the sample. International loss consolidation facilitated by a global switch to unitary taxation would reduce the overall tax base by around 12 per cent.

Income tax composition of Indonesia, South Africa, and Brazil

Indonesia South Africa BrazilIndividual 24% 62% 14%

PAYE 23% 60% 8%

Selfemployed

1% 2% 6%

Corporate 33% 36% 46%

Others 43% 2% 41%

Total 100% 100% 100%

Although the income tax revenue is more dominant than consumption tax, the revenue of income tax mostly obtained from employees through PAYE system.

It shows us that tax paid by the middle class (employees), not by self-employed individuals.

Rank Country

Financial Asset in Tax

Haven(billionUSD)

1 China 1.1892 Rusia 7983 Korea 7794 Brazil 5295 Kuwait 4966 Meksiko 4177 Venezuela 4068 Argentina 3999 Indonesia 331

10 Arab Saudi 308

Rank

Negara Total

1 China 1.252

2RussianFederation

974

3 Mexico 514 4 India 440 5 Malaysia 395 6 Brazil 217 7 Indonesia 188 8 Thailand 172 9 Nigeria 157

10 South Africa 122

Financial Asset Stored in Tax Haven

Top ten of illicit financial flows 2003-2013 (billion USD)

Tax Revenue Loss Estimates Some Developing Countries (G20) Originating from Bilateral Trade mispricing by the

European Union and the United States (millions GBP)

Indonesia, South Africa, and Brazil are always included in top list of countries suffered the greatest losses due to tax evasion.

Tax base deduction by shifting of profit to other countries is well known as Base Erosion Profit Shifting (BEPS).

Isu-isu Kunci

• Formula Teknis/substansi : BEPS Action Plan VS Beyond BEPS

• Siapa yang memutuskan : G20-OECD Vs Negara2 Berkembang