Page 2 - Working Paper (Measuring BEPS and Its Countermeasures in Indonesia: A Preliminary Research Guide)

B. Bawono Kristiaji dan Denny Vissaro 1 Measuring BEPS and
its Countermeasures
in Indonesia:
BEPS practices have gain rising attention
over the last decade, particularly in Indonesia. A Preliminary
However, knowledge about its magnitude is Research Guide
still relatively unknown. Many researches
with various methods have been developed to
enlighten the dimensions of BEPS. This paper
examines the possibilities and limitation DAFTAR ISI
in measuring BEPS in Indonesia, assess
currently available data and suggest what can
1. Introduction..... 3
be done to optimize the potential in the future.
Furthermore, this paper also proposes set of
researches plan to ensure the knowledge 2. The Concept of BEPS..... 4
development of BEPS.
3. The Need to Measure and 6
It is important to note that measuring the Monitor.....
magnitude of BEPS in one particular country
is difficult from substantive and technical 4. Assessing Data and Research 7
point of view and also data limitation. Tool Options.....
Substantively, BEPS practices are seemingly
similar with other financial activities, and 5. Currently-Feasible Options 15
not all factors influencing the magnitude can for Measuring BEPS and
be easily incorporated into the model. For
Its Countermeasures in
instance, incorporating hybrid mismatch Indonesia.....
arrangements that are used for BEPS into
an estimation model would bring particular
6. Conclusion..... 20
complexity. From technical side, it is difficult
to build reliable estimation model using time-
series data. Then, regarding data inadequacy,
this paper points out that restricted access for
micro-approach researches are ideal to
research purpose is one of the constraints for
narrow the knowledge of BEPS behavior,
BEPS measurement advancement.
particularly in identifying specific BEPS
scheme or MNEs in certain sector.
This paper provides introductory
Researches with this methodology
guide or basic principle that could be of
are also favorable to measure the
consideration in setting the research plan.
effectiveness of BEPS countermeasures,
Preliminarily, macro-approach research is
since each of them usually have their
useful to measure the magnitude of BEPS
own specific purpose.
in overall. Currently available data that can
be used include CIT revenue as the basis to
measure the government loss due to BEPS
practices. Other variables can be utilized
to help distinguishing BEPS practices from
usual investment flow. Subsequently, set of

1. B, Bawono Kristiaji is the Partner, Research & Training Services at DDTC,
Denny Vissaro is the Fiscal Economist at DDTC
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