ABSTRACT

Taxpayers use the services of other parties (promoters) who have great knowledge of domestic and international tax laws for arranging tax planning. Tax planning is legal because it does not violate the rules and still within the corridor rules apply. But tax planning activities can be aggressive or called aggressive tax planning if still in the corridor law that apply but have a different purpose with the intention of the law. This activity will gradually erode the basis of a country's tax revenue.

In 2015, countries in the Organization of Economic Co-operation and Development (OECD) and G20 including Indonesia have agreed to implement 15 action plans called the Base Erosion and Profit Shifting (BEPS) Action Plan to address the problem of the tax base erosion and profit shifting. One of the action plans is BEPS Action Plan 12: Mandatory Disclosure Rules to counter aggressive tax planning. BEPS Action Plan 12: Mandatory Disclosure Rules is mandatory reporting for Taxpayers and promoters to disclose tax planning schemes undertaken in order to obtain early information on aggressive tax planning.

This study aims to determine the suitable form implementation of BEPS Action Plan 12: Mandatory Disclosure Rules in Indonesia’s domestic tax regulation and the design framework based on seven basic elements of BEPS Action Plan 12: Mandatory Disclosure Rules. The research is conducted with qualitative approach and data collection is conducted through literature review and in depth interview with practitioner, academics and tax authority in Indonesia. The results of this study indicate the suitable form of implementation is Regulation of the Minister of Finance, and the design framework based on seven basic elements of the BEPS Action Plan 12: Mandatory Disclosure Rules is slightly different from the recommendations.

Keywords: aggressive tax planning, Base Erosion and Profit Shifting (BEPS), BEPS Action Plan 12, mandatory disclosure rules