Contoh: Short Essay "Customs Valuation Aspects for Better Judgment on Transfer Pricing"

Berikut merupakan essay singkat yang saya kirimkan pada seleksi training OECD yang diadakan kantor beberapa tahun yang lalu. Buat yang membutuhkan, mudah-mudahan dapat membantu dalam membuat essay singkatnya. 


Customs Valuation Aspects for Better Judgment on Transfer Pricing



While promoting reformation among the government institution in Indonesia through modernizing the tax administration system, Directorate General of Taxes (DGT) also faces serious challenges in fulfilling its main duty to collect the state revenue in various aspects, including worldwide trading. As the worldwide trading activities are increasing, DGT should give considerably attention on the pricing of those traded goods. Most of world trade is carried out by multinational enterprises (MNEs), and half of that consists of transfer of goods, intangibles and services within. These issues make international taxation and in particular transfer pricing become a serious concern for tax administrations among countries.

Over or under-pricing can affect the allocation of tax bases among the various jurisdictions in which the MNE operates. By shifting profits from one jurisdiction to another, distorted transfer pricing can deprive governments of their fair share of taxes from cross-border transactions. On the other side, Government should provide certainty for tax payers since public demand the certainty from government to run its business, in this case the pricing of its transfer.

Logically, the value stated on the declared customs value should be projected as the ceiling for the tax basis. On the practice of our government, there is no coordination involved between customs authority and tax authority in analyzing the customs valuation or Transfer Pricing. This mostly happened because each authority has some level of confidence on their procedures on defining customs value and transfer price. Having this short course arise question whether there is any circumstance with potential benefit where tax authority can include a custom valuation data on deciding transfer pricing and vice versa. Several literatures on Transfer Pricing and Customs Valuation gave understanding that there is no conclusive opinion whether the two should be converged or not. Nonetheless, the discretion of taxpayers to differently expose its pricing in customs valuation and transfer pricing could become one of the factors adding to the asymmetry of information on MNE’s obligation on tax and excise, and consequently will lead to wrongfulness of decision made by government.

This short course will provide a bundle of existing theories and practices that could be used to understand the difference of customs valuation and transfer pricing and mutual concept shared by both of them. By comprehending issues and aspects between transfer pricing and custom valuation in this short course, I hope that there will be a model of thought on conceiving solution to be applied on transfer pricing cases on APA and MAP in DGT. Moreover, knowledge shared is expected to improve the existing “dispute resolution mechanisms” we have, thus to minimize the possibilities for tax payers in doing tax evasion and tax avoidance in Indonesia.

After having this short course, it will be my responsibility and commitment to provide knowledge sharing and to contribute to Sub Directorate Tax Treaty and International Tax Cooperation, Directorate General of Taxes in developing optimal policies specific to International Tax Cooperation.
  


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