Exceptional Crisis of Banks is the Reason Singapore to Tackle Tax Amnesty

Policy war becomes the major issue arisen between singapore and indonesia since the release of Indonesia tax amnesty released. In one way around, tax amnesty makes singapore in stagger.

The late issues, indonesians are indignant by the decision of singapore to report all tax amnesty participants of indonesia who stored their money in that country's bank. Total of amount of indonesian money in singapore bank are around Rp 3000 trillion according to analyst from danny darussalam tax center. It is around 56% from total saving in the banks which are in all Rp 5.300 trillion.
This amount of money has been used as liquidity by that country for development in singapore.

Why singapore tries so many efforts to deter tax amnesty?

The possibility of repatriated funds Rp 3000 trillion means the bankruptcy of singapore banks. It is predicted the exceptional crisis after the money withdrawn to Indonesia.

Singapore has allured the indonesian businessmen to decline the call for tax amnesty. According to chamber of commerce and industry(KADIN), major singapore's banks wills to pay 4% of the ransom repatriation of assets belongs to indonesian businessmen stored in that country. This means singapore relied much on indonesian fund to bolster its program and development.

Nevertheless, through formal acknowledgement of singapore as stated by finance minister, the country precisely support tax amnesty. The report of assets which join tax amnesty to the police was merely legal procedure of banks to monitor on suspicious transaction. Further sri mulyani said, it's applicable for all banks to avoid money laundry case.

Reuters disclosed conspiracy of singapore

The large world media reuters has made scrutiny over the alleged conspiracy of singapore to fail indonesia tax amnesty. The police unit of singapore in charge of commercial affairs indeed warned already last year for the banks to fill the suspicious transaction report for all tax amnesty participant. As indonesia launched the policy to woo back the fund stored in singapore, their private banks made sly strategy to block the scheme. Reuters found out that the banks had reported the list of wealthy indonesians who stash their money in the country an alarm for them not to participate in repatriation scheme. The singapore police then refuse to comment on that issue right after the news release by reuters.

Reuters cognized that the three private banks has filled the suspicious transaction report(STR) for each bank clients who aim to join tax amnesty scheme.

However monetary authority of singapore(MAS) denied tackle to tax amnesty scheme in proposition that STR is a must to ensure of no suspicious transaction made. It is not to hinder indonesia step to withdraw back their citizens money stashed in singapore. Singapore authority postulated that they support indonesia tax amnesty and having no bad intention to undermine.

Extra Vigilance of Indonesia

Indonesia authority seems to trust much on the confirmation of support from singapore regarding tax amnesty scheme. Indonesia finance minister sri mulyani claimed to have already directly confirmed to deputy prime minister of singapore regarding the issue. Sri mulyani said that singapore has no bad intention to crackdown repatriation of fund of the state. Nonetheless, political rhetoric of singapore is worth to be taken into consideration of the state. There must be smart further investigation toward conspiracy of singapore. In fact there is a dilemma of repatriated fund of tax amnesty to reach the government target. There is still remaining big amount of money of indonesian stagnant in singapore. This means an alarm for extra vigilance of the country to continue monitoring for any act of undermining toward tax amnesty scheme.

Finance minister in fact convey to report for any act of hindrance for the scheme. This is about the reputation of the country. Mostly the wealthy indonesian in singapore are the fled chinese ethnic due to crisis of 1998. Singapore definitely is playing the tricky game precisely in still long period of tax amnesty that lasts to march 2017