Finance Minister Confirms Singapore Supports Tax Amnesty Program

Minister of Finance Sri Mulyani Indrawati accompanied by Director General of Taxation responds to reporters’ question on Singapore’s support to Tax Amnesty Program on Thursday (15/9), in Jakarta

After receiving confirmation from Singaporean Deputy Prime Minister Tharman Shanmugaratnam, Indonesian Minister of Finance Sri Mulyani Indrawati ensured that the Government of Singapore through Monetary Authority of Singapore (MAS) gives its support to Indonesia’s Tax Amnesty program.

Sri Mulyani told the reporters in response to the news saying Singapore banks will report Indonesians who use tax amnesty program to the police. “That news would potentially interfere taxpayers living or saving their assets in Singapore,” the Minister said in a press conference on Thursday (15/9), at the House of Representatives’ Complex, Jakarta.

Moreover, the MAS called on all Singapore banks to support their clients who want to join the Tax Amnesty program, Sri Mulyani added.

The Minister admitted that Singapore banks are obligated to comply with the rules of the Financial Action Tax Force (FATF), including reporting any transactions deemed suspicious. “This action is commonly done by members of FATF in order to detect any illegal financial activities, including money laundering,” Sri said.

However, Minister Sri added, the participation of Indonesian citizens who have money or assets in Singapore in the Tax Amnesty program is not included in those categories because it is important to improve tax system in Indonesia.

“In the context of Tax Amnesty, MAS on behalf of the Singaporean Government asserted that the participation of Indonesian citizens in the Tax Amnesty program cannot be considered as an action that could attract or trigger a criminal investigation,” Sri stated.

Previously, it was reported that the Singapore banks would report Indonesians having money or assets in Singapore who will participate in Tax Amnesty program.

The report to be submitted to the FATF is rumored to be the basis for the Singaporean police to conduct an investigation of the involvement of the Tax Amnesty participants in tax evasion.  (BIP Kemenkeu/ES)(RAS/EP/YM/Naster)