TRANSFER PRICING RISK ASSESSMENT: UN GUIDELINES, PRACTICES IN AUSTRALIA, AND RECOMMENDATIONS FOR INDONESIA

Authors

  • Meiliana Meiliana Universitas Indonesia, Indonesia
  • Maria R.U.D. Tambunan Universitas Indonesia, Indonesia

DOI:

https://doi.org/10.29040/ijebar.v8i3.15033

Abstract

The Directorate General of Taxes has implemented the Compliance Risk Management (CRM) application, including the CRM Transfer Pricing (CRM TP) program, as a tool to map risks in transfer pricing practices. However, the effectiveness of CRM TP in ensuring compliance and preventing tax avoidance still requires further evaluation. According to a study by Maydiana (2023), the implementation of CRM faces various challenges, such as lack of support, data limitations, and insufficient system integration. At the international level, the United Nations (UN) guidelines for transfer pricing risk assessment have been successfully implemented in Australia. This research will explore the transfer pricing risk assessment approach by referring to the UN guidelines and Australia's experience, as well as provide strategic recommendations for The Directorate General of Taxes. The research employs a qualitative approach, using literature review as the method of data collection. The findings indicate that the assessment criteria, both quantitative and qualitative, do not accurately cover all relevant factors. Moreover, the effectiveness of the risk identification and monitoring processes also requires improvement, particularly in the use of data analysis applications that are not yet optimal and integrated. The monitoring and feedback mechanisms also need to be evaluated to be more adaptive to changing risks. The strategic recommendations proposed include the implementation of an integrated risk assessment approach, optimization of data utilization from Country by Country Reports, development of data analysis technology and monitoring systems, application of risk classification and compliance guidelines, as well as the enhancement of governance and documentation. These steps are expected to strengthen the transfer pricing risk assessment system, improve tax compliance, and create a more transparent business environment.

References

Australian Taxation Office. (1998). TR 98/11 - Income tax: Documentation and practical issues associated with setting and reviewing transfer pricing in international dealings. Australian Taxation Office.

Butler, Michael, Lucille White, dan Montana Prpic. (2015). Australia - Australian Taxation Office’s Transfer Pricing Risk-Rating System. International Transfer Pricing Journal, 2015 (Volume 22), No. 2. DOI: https://doi.org/10.59403/29p07a2.

Creswell, J. W. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (4th ed.). Thousand Oaks, CA: SAGE Publications.

DDTC. (2021). Aplikasi Baru, DJP Awasi Penghindaran Pajak Lewat Transfer Pricing. Diakses dari: https://news.ddtc.co.id/berita/nasional/31266/aplikasi-baru-djp-awasi-penghindaran-pajak-lewat-transfer-pricing.

DDTCNews. (2024). Coretax DJP, Kepatuhan Berbasis Risiko: Tiap Wajib Pajak Tidak Sama. Diakses dari: https://news-lite.ddtc.web.id/berita/nasional/1803121/coretax-djp-kepatuhan-berbasis-risiko-tiap-wajib-pajak-tidak-sama.

Direktorat Jenderal Pajak. (2019). Surat Edaran Direktorat Jenderal Pajak Nomor SE-24/PJ/2019 tentang Implementasi Compliance Risk Management dalam kegiatan pengawasan, pemeriksaan, dan penagihan di Direktorat Jenderal Pajak.

Direktorat Jenderal Pajak. (2021). Surat Edaran Direktorat Jenderal Pajak Nomor SE-39/PJ/2021 tentang Implementasi CRM dan Business Intelligence.

Direktorat Jenderal Pajak. (2022). Laporan Tahunan DJP 2022. Diakses dari https://www.pajak.go.id/sites/default/files/2023-12/Laporan%20Tahunan%20DJP%202022%20-%20Bahasa.pdf

Gunadi. (2007). Pajak Internasional. Jakarta: Lembaga Penerbit Fakultas Ekonomi Universitas Indonesia.

IMF, OECD, UN, World Bank. (2021). The Platform for Collaboration on Tax Practical Toolkit to Support the Successful Implementation by Developing Countries of Effective Transfer Pricing Documentation Requirements. Diakses dari:

https://www.tax-platform.org/sites/pct/files/publications/Practical%20Toolkit%20to%20Support%20the%20Successful%20Implementation%20by%20Developing%20Countries%20of%20Effective%20Transfer%20Pricing%20Documentation%20Requirements%20-%20vF.pdf

Maydiana, Anggi. (2023). Analisis Implementasi Compliance Risk Management (CRM) dalam Meningkatkan Fungsi Pengawasan dan Pemeriksaan Pajak di Indonesia. Fakultas Ilmu Administrasi, Universitas Indonesia.

OECD (2015), Transfer Pricing Documentation and Country-by-Country Reporting, Action 13 - 2015 Final Report, OECD/G20 Base Erosion and Profit Shifting Project. Paris: OECD Publishing. DOI: https://doi.org/10.1787/9789264241480-en.

Phinanti, Erlin dan Agustinus Lumban Tobing . (2023). Compliance Risk Management On Indonesian Taxation: Is It As Good As Expected?. Jurnal Akuntansi, Vol 10 No. 2, Juli 2023. DOI: Http://doi.org/10.30656/Jak.V10i2.6218 e-ISSN 2549-5968.

Sarwono, J. (2006). Metode Penelitian Kuantitatif dan Kualitatif. Yogyakarta: Graha Ilmu.

Silberztein, Caroline dan Océane Le Naourès. (2018). International - Country-by-Country Reporting: Handbook on Effective Tax Risk Assessment. International Transfer Pricing Journal, 2018 (Volume 25), No. 1. DOI: https://doi.org/10.59403/31tvesp.

Spengel, Christoph. (2018). International/OECD - Country-by-Country Reporting and the International Allocation of Taxing Rights. Bulletin for International Taxation, 2018 (Volume 72), No. 4/5. DOI: https://doi.org/10.59403/1177wz1.

Tapia, Julia Maria Martinez dan Nupur Jalan. (2022). International - An Approach to BEPS Risk Assessment: Applying Data Analytics Techniques to Country-by-Country Reporting Data. International Transfer Pricing Journal, 2022 (Volume 29), No. 2. DOI: https://doi.org/10.59403/2y7zwx5.

United Nations. (2024). Transfer Pricing Compliance Assurance An End-to-End Toolkit Advance Unedited Version. https://financing.desa.un.org/document/transfer-pricing-compliance-toolkit-advanced-unedited-version. Published online: 24 July 2024.

Zed, M. (2014). Metode Penelitian Kepustakaan. Jakarta: Yayasan Obor Indonesia.

Downloads

Published

2024-09-24

How to Cite

Meiliana, M., & Tambunan, M. R. (2024). TRANSFER PRICING RISK ASSESSMENT: UN GUIDELINES, PRACTICES IN AUSTRALIA, AND RECOMMENDATIONS FOR INDONESIA. International Journal of Economics, Business and Accounting Research (IJEBAR), 8(3). https://doi.org/10.29040/ijebar.v8i3.15033

Issue

Vol. 8 No. 3 (2024): IJEBAR, VOL. 8, ISSUE 3, September 2024

Section

Articles

Citation Check

License

Authors who publish with IJEBAR agree to the following terms: Authors retain copyright and grant the IJEBAR right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) the work for any purpose, even commercially with an acknowledgement of the work's authorship and initial publication in IJEBAR. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in IJEBAR. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).