VIVAnews - Taxation analyst from a nonprofit agency Lumbung Informasi Rakyat (LIRA), Narliswandi Piliang, said Indonesia's losses from transfer pricing reach Rp 1,300 trillion.
The estimate was acquired from the transfer pricing section at the Directorate General of Taxes based on data of the OECD (Organization fro Economic Co-operation and Development). Transfer pricing is often applied by multinational companies to minimize tax payable through pricing manipulation.
Nurliswandi said the amount of losses suffered from the transaction has been considerably significant. "The estimate is significant because it takes 60 percent of the total transaction of Rp 2,100 trillion in 2009," said Nurliswandi yesterday, June 29.
Nurliswandi pronounced his disappointment upon the fact that the Directorate General of Taxes only allocates 12 officers to deal with the issue. "Not every one of them understands about transfer pricing," he said.
Iwan also blamed the government for having a delay in dealing with transfer pricing issue. The Directorate General of Taxes only set up a section which is responsible for transfer pricing in 2007.
Compared to Singapore, Indonesia is left behind. In the neighboring country, those foreign-investment-based businesses that do not gain profit within five years must revoke their investment.