Commission XI of the House of Representatives has approved the regulation in lieu of law (Perppu) No. 1/2107 on banking transparency, that allows the tax authority to access taxpayers' bank data.
The technical guidance of the Perppu, the Regulation of the Minister of Finance No. 70 / PMK.03 / 2017 on Technical Guidelines on Access to Financial Information for Taxes Purposes has also been disseminated.
The regulation signed by Minister of Finance Sri Mulyani Indrawati also set the balance limit that could be accessed by Directorate General of Taxes (DJP), which is at Rp 1 billion minimum.
This applies equally to all financial institutions that include banking, capital markets and insurance.
The data will not be submitted in person, but by each financial service agency with a one-year calendar report. The mechanism will be further regulated in the Taxation Directorate General Regulation.
Sri Mulyani had also confirmed on Tuesday that the government will make rules of conduct about the regulation to keep the confidentiality and prevent a data leakage.
"We'll resolve the rules of conduct, guidelines, who'll have the access, how they act and how to maintain confidentiality," said Sri Mulyani.
She then added they will also refer to the Banking Law and General Taxation System (KUP) to prevent the abuse of power by the authority.