Abstract
Taxpayer data and information of banking and finance institutions are useful for guidance in giving prediction on any kind of development. A corrective act must be taken as an effort of law enforcement within taxation sector and to increase the Inland Revenue. Financial information exchange concerning on tax interests can be done by both demand and automatic way (Automatic Exchange of Financial Account Information/AEol). This study aimed to know the urgency of Legislations of Law Number 9/2017 as the country allowance increasing effort and how Malaysia's Commitment to Implement Automatically Exchange Information Relating to Financial Accounts (AEoI). Using descriptive qualitative as the methodology, the result showed that Indonesia proved the commitment by signing Multilateral Competent Authority Agreement after AEoI and agreed to start the automatic financial information exchange. It has approved on the Legislation Number1/2017 on financial information access as tax interests which then changed to Legislation Number 9/2017 a year later. Meanwhile, in comparison, Malaysia’s commitment to the AEoI has signed some agreements and committed to exchange information with respect to different types of accounts opened and maintained by the Malaysian financial institutions.
Highlights
In this modern era, financial transaction is growing rapidly
This study aimed to know the urgency of Legislations of Law Number 9/2017 as the country allowance increasing effort and how Malaysia's Commitment to Implement Automatically Exchange Information Relating to Financial Accounts (AEoI)
It has approved on the Legislation Number1/2017 on financial information access as tax interests which changed to Legislation Number 9/2017 a year later
Summary
Financial transaction is growing rapidly. It happens in any forms, including cash or non-cash. This access is to support the taxation authority in strengthening basic data of taxation to fulfill the needs of tax and to keep it work effectively. Under the AEoI rules, every Reporting Financial Institution is required to comply with the following:
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have