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through trade mispricing , but possibly restricted the possibility to certain extent this valuable
for research purpose. information could be obtainable or accessible for
research purpose.
On the whole, one should note that the
utilization effectiveness of these data are reliant Accordingly, the future path of BEPS
to the support of non-tax data provision, such as measurement is clearly dependent on the
economic data, financial or business data and improvement of quality and relevance of available
governance information. These all are important data to improve indicators and economic analyses
to segregate BEPS-related practices from usual of BEPS. In the current state of BEPS analysis,
business activities that are blended in certain Fiscal Policy Agency (FPA) is still generally utilizing
datasets, such as FDI, corporate tax base erosion, available data, with some data that actually
or reported profit. Classifying those type of data already collected by other government institution
and bridging them to measurement tools would – particularly DGT – are not incorporated due to
provide more accurate estimation and describe the there is no data integration between the two.
nature of BEPS in relation with other factors.
Although there are some new and innovative
5.2. Future Focus: Optimizing the Potential for BEPS analysis, they are all significantly constrained
Future Research by significant data limitations. The academic
community has demonstrated its creativity in
Given the classification described in Table 2, we examining new dimensions of BEPS to explore
can infer that the major limitation lies on micro- with currently available data, but still, new data
research data. There are very few MNEs data that availability will bring huge benefit and extend the
publicly open their financial information, and length of possible further BEPS analyses.
almost none of them provide the data in detail.
Some of their necessary data are provided in Hence, it means that improved data and tools
financial database, such as ORBIS, but only a small are necessary if the global community is to obtain a
number of MNEs. clearer picture of the scale and impact of BEPS and
properly monitor the effectiveness of the measures
Furthermore, MNEs who are seeking investment
implemented by the government. The main goal
from capital market and openly listed in Indonesia
is that in the future, better data would allow new
Stock Exchange (IDX) provide their necessary
and more refined indicators as well as refined
data to IDX and Financial Services Authority (OJK)
economic analyses of BEPS and the effectiveness of
confidentially and only for limited purpose. In
BEPS countermeasures.
addition, most of MNEs in Indonesia are not openly
listed in Indonesian capital market, hence it is not Principally, OECD described important features
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ideal to put effort to open the data. of ‘better’ data as follows :
However, with the enactment of PMK 213, the 1. More relevant BEPS information (i.e. total
government should anticipate new information MNE tax payments by country, tax residence
provided by MNEs through transfer pricing of the entity rather than simply country of
documentation in the form of headquarter and incorporation, related party transactions and
country by country reporting documentation structures).
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– aside from usual local documentation. This 2. More coverage of companies, countries, and
availability means new data source is exist to MNE relationship, which include:
advance BEPS measurement and magnitude. The
• More complete set of companies (e.g. fewer
data can help in in improving research development
missing entities and groups and better
regarding risk assessment in identifying any
coverage across all countries).
transaction that potentially creates transfer pricing
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activities or other BEPS schemes. But we should • More complete information from currently
available company tax and non-tax records.
remind as well that the effectiveness of BEPS
measurement have dependency to certain level on • Clear identification of MNE companies on tax
how effective the government could gain data from return forms, both domestic companies of
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this regulation. Government should then consider foreign MNE parents and domestic parents
of foreign affiliates. Improved linkages
48. Kimberley A. Clausing, “Tax-Motivated Transfer Pricing and US between related entities and overall MNE
Intrafirm Trade Prices”, Journal of Public Economics No. 87(2003). group information.
49. See Minister of Finance Regulation (PMK) 213/03/2016 Chapter 2. 3. Increase access to available data for government
50. See UN, United Nations Practical Manual on Transfer Pricing for
Developing Countries (New York: UN, 2013), 83-111 as quoted in
B. Bawono Kristiaji, “Incentives and Disincentives of Profit Shifting in Shifting dan Dampaknya terhadap Peraturan Pajak di Indonesia”, DDTC
Developing Countries”, Master Thesis for Tilburg University (2015): 89. Working Paper No. 0714 (2014): 18.
51. Darussalam and Ganda C. Tobing, “Rencana Aksi Base Erosion Profit 52. OECD, Opcit, 251.