JAKARTA: Singapore has refuted claims made by Indonesian media this week alleging that several of its banks have lured Indonesian clients into leaving their assets in the country instead of repatriating them home, using a special scheme.
In a joint statement on Saturday (Jul 23), Singapore's Ministry of Finance (MOF) and the Monetary Authority of Singapore (MAS) said the claims of policies being implemented in Singapore to "thwart" Indonesia's tax amnesty programme were untrue.
“Singapore has not cut tax rates, nor changed our policies in response to Indonesia’s Tax Amnesty Programme," the statement said.
"We subscribe to internationally agreed standards for combating money laundering and for exchange of information. If there is any case of suspected cross-border tax evasion, concerned authorities can approach Singapore – we have assisted and will continue to assist in line with the international standards."
"We have no interest in sheltering illicit tax monies," a statement from the Singaporean Embassy in Jakarta added.
On Thursday, Indonesian Vice-President Jusuf Kalla was quoted in local media as saying that every country wanted to survive, and the claims being circulated accusing Singaporean banks only "proves what people always say that most of the money stashed in Singapore comes from Indonesia".
Meanwhile, Finance Minister Bambang Brodjonegoro reportedly said that Singapore's rumoured bank scheme was a move to "challenge" Indonesia, but he was confident that Indonesian taxpayers would repatriate their assets back to their own country.
He added that he is not afraid of the move by Singaporean banks, reportedly telling Indonesian media on Tuesday that he is “not afraid of Singapore which is just a small country”. He had previously said the amnesty is expected to draw about 165 trillion rupiah (S$16.9 billion) for the government.
Indonesia kicked off its tax amnesty programme on Jul 18. It grants special personal income tax rates to tax evaders who declare their past earnings between this month and next March. People and companies that declare their earnings and pay the special taxes will not be penalised for having failed to declare them before.
SINGAPORE BANKS SUPPORT TAX AMNESTY PROGRAMME: PRIVATE BANKING INDUSTRY GROUP
“Singapore banks support this tax amnesty programme from Indonesia,” said Ms Tan Su Shan, co-chair of MAS's Private Banking Industry Group. “Tax amnesty programmes can be a useful tool for individuals to regularise their tax affairs with their respective tax authorities.”
She added that in the case of the Indonesian tax amnesty programme, Indonesians should seek proper tax advice and determine if and to what extent the programme applies to them, based on the details that have been announced.
“Banks in Singapore will provide the necessary support for their clients who participate in the programme,” she added.
SINGAPORE SMALL, BUT RESPECTED AND SUCCESSFUL: SHANMUGAM
In a Facebook post on Saturday (Jul 23), Singapore’s Law and Home Affairs Minister K Shanmugam said he does not understand why there is “this constant attempt to put us down; and taunting us that we are small.”
His remarks came after Indonesia’s Finance Minister was quoted saying to Indonesian media that he was “not afraid of Singapore which is just a small country”.
Mr Shanmugam wrote that Singapore is good friends with Indonesia in the last 50 years. Both countries have cooperated on many matters, and both countries benefit from these good relations. “But every now and then, someone in Indonesia will tell us that we should know our place, a little red dot,” he wrote.
“Yes, we are a little red dot. We may be small. But we are respected and successful. And our people lead meaningful lives. And we don’t live in fear of anyone else,” he added.
In a joint statement on Saturday (Jul 23), Singapore's Ministry of Finance (MOF) and the Monetary Authority of Singapore (MAS) said the claims of policies being implemented in Singapore to "thwart" Indonesia's tax amnesty programme were untrue.
“Singapore has not cut tax rates, nor changed our policies in response to Indonesia’s Tax Amnesty Programme," the statement said.
"We subscribe to internationally agreed standards for combating money laundering and for exchange of information. If there is any case of suspected cross-border tax evasion, concerned authorities can approach Singapore – we have assisted and will continue to assist in line with the international standards."
"We have no interest in sheltering illicit tax monies," a statement from the Singaporean Embassy in Jakarta added.
On Thursday, Indonesian Vice-President Jusuf Kalla was quoted in local media as saying that every country wanted to survive, and the claims being circulated accusing Singaporean banks only "proves what people always say that most of the money stashed in Singapore comes from Indonesia".
Meanwhile, Finance Minister Bambang Brodjonegoro reportedly said that Singapore's rumoured bank scheme was a move to "challenge" Indonesia, but he was confident that Indonesian taxpayers would repatriate their assets back to their own country.
He added that he is not afraid of the move by Singaporean banks, reportedly telling Indonesian media on Tuesday that he is “not afraid of Singapore which is just a small country”. He had previously said the amnesty is expected to draw about 165 trillion rupiah (S$16.9 billion) for the government.
Indonesia kicked off its tax amnesty programme on Jul 18. It grants special personal income tax rates to tax evaders who declare their past earnings between this month and next March. People and companies that declare their earnings and pay the special taxes will not be penalised for having failed to declare them before.
SINGAPORE BANKS SUPPORT TAX AMNESTY PROGRAMME: PRIVATE BANKING INDUSTRY GROUP
“Singapore banks support this tax amnesty programme from Indonesia,” said Ms Tan Su Shan, co-chair of MAS's Private Banking Industry Group. “Tax amnesty programmes can be a useful tool for individuals to regularise their tax affairs with their respective tax authorities.”
She added that in the case of the Indonesian tax amnesty programme, Indonesians should seek proper tax advice and determine if and to what extent the programme applies to them, based on the details that have been announced.
“Banks in Singapore will provide the necessary support for their clients who participate in the programme,” she added.
SINGAPORE SMALL, BUT RESPECTED AND SUCCESSFUL: SHANMUGAM
In a Facebook post on Saturday (Jul 23), Singapore’s Law and Home Affairs Minister K Shanmugam said he does not understand why there is “this constant attempt to put us down; and taunting us that we are small.”
His remarks came after Indonesia’s Finance Minister was quoted saying to Indonesian media that he was “not afraid of Singapore which is just a small country”.
Mr Shanmugam wrote that Singapore is good friends with Indonesia in the last 50 years. Both countries have cooperated on many matters, and both countries benefit from these good relations. “But every now and then, someone in Indonesia will tell us that we should know our place, a little red dot,” he wrote.
“Yes, we are a little red dot. We may be small. But we are respected and successful. And our people lead meaningful lives. And we don’t live in fear of anyone else,” he added.
