34. PERAN ORGANIZATION FOR ECONOMIC AND DEVELOPMENT DALAM MENANGGULANGI PRAKTIK TAX CRIME DI INDONESIA STUDI KASUS: TRANSFER PRICING DI INDONESIA TAHUN 2003 – 2012

Abstract

Taxes are major sources of income for Indonesia, in which taxes contribute 74% - 80% of
total revenue. The practice of transfer pricing is a problem faced by Indonesia related tax
revenue. Transfer pricing causes a potential loss in state revenue from the tax sector.
Between 2003 to 2012, Indonesia had suffered a loss of US $ 152.154 billion. The amount
of loss encouraged Indonesia to take various efforts to solve this problem, such as
cooperation with the OECD. This study aims to explain the role undertaken by the OECD
in tackling transfer pricing practices in Indonesia. The method used in this research is
qualitative descriptive type-explanation. Liberal institutionalist theory and the concept of
the role by Biddle and Biddle are used to analyze the role of the OECD in dealing with
transfer pricing practices in Indonesia. Through this partnership, the role played by OECD
giving seminars, counseling, also training to improve the knowledge and expertise of the
Indonesian tax authorities. The OECD also provides an opportunity for Indonesian tax
investigators are able to participate in OECD’s the Tax Academy. OECD also has BEPS
Project to address the Base Erosion and Profit Shifting (BEPS) among multinational that
includes program management of transfer pricing activities. In this regard, the OECD
focuses on the provision of advice related to legal or tax policy and help increase the
ability of the tax investigators.