Tax Amnesty: A Game Changer?
After months of prolonged debate and considerable controversy, the House of Representatives finally approved the Government-initiated Tax Amnesty Bill during a plenary session on Tuesday, June 28. The Tax Amnesty (the "Amnesty") was proposed by the Government as a stop-gap measure to shore up declining tax revenues amid the ongoing economic downturn. The Government hopes that up to Rp 165 trillion will be repatriated as a result of the Amnesty, although the figures vary wildly depending on which government department is doing the talking. This has led many economists and commentators to question whether the government is actually in possession of accurate data as to the true amount of Indonesian funds parked overseas that would come within the scope of the Amnesty. The new legislation will come into effect upon its signing by the President and publication in the Official Gazette.