Regulations are required to access taxpayers credit card transactions data, particularly of individual tax payers (WP OP), without violating banking laws, Finance Minister Bambang Brodjonegoro said.
“We need the data for WP OP profiles because we cannot access their bank accounts as the banking law prohibits that. Therefore, we want access to their credit card transactions in order to check their tax profiles,” said Bambang here on Friday.
Bambang said that if a taxpayer reported his or her monthly income at Rp5 million but his/her expenditure through credit cards reached Rp20 million per month, the tax officials will know that he or she has made an incorrect annual tax report (SPT).
“This means that while he/she has claimed to have a monthly income of Rp5 million through the SPT, but his/her tax liability should be corrected. We will compare his or her transactions undertaken though credit cards with his or her annual tax report and see if these match,” the minister said.
Bambang said the plan to put in place a regulation to access credit card transaction reports was discussed long back with the Financial Service Authority (OJK). The OJK will popularize it among banks and credit card issuers.
Indonesian central bank (BI) Deputy Governor Ronald Waas said bringing in regulations to access credit card transactions will be problematic since the law on banks does not allow access to this information.
“We can look at the banks confidentiality regulations to see if the credit card detail or information about savings has to be kept confidential. But all laws which regulate the confidentiality of data allow access to the same if it concerns national interest, but with the approval of the OJK,” the finance minister remarked.
The Finance Ministry has issued a regulation which requires 22 banks and credit issuer institutions to report credit card data and transactions to the Directorate General of Taxations.
The matter was regulated vide the Finance Ministers Decree No. 39/PMP.03/2016 on the Type of Data and Information as well as the Report Procedure of Data and Information which concerns taxation. It came into effect on the day of its enactment on March 22, 2016.