Obligations for Indonesian Banks to Report Its Customers Data to Tax Office Under Automatic Exchange of Information (AEOI) Stipulations

Abstract

This study aims to determine the legal implications after Indonesia signed a Multilateral Agreement between authorized officials (Multilateral Competent Authority Agreement) on the Automatic Exchange of Financial Account Information (AEOI). The agreement requires the government to make regulations that authorize the tax authorities to access financial information where the obligations are contrary to the principles of banking law in Indonesia which are required to maintain the confidentiality of customer data. The method used is normative juridical approach to legislation and conceptual approach. The results of this study reveal that in the application of an exchange access policy for financial information that is contrary to the principles of banking law, the legal principle of lexspecialis derogate legigeneralis is used. The government collaboratively with Indonesian banks and financial institutions must promote these new requirements to the public, especially customers of banks and financial institutions. Keywords—tax amnesty; common reporting standart; automatic exchange of information