Disclosure of Bank Secrets for Tax Investigation Purposes

MAINTAINING the confidentiality of customer data is an urgent matter for banking institutions to do. In this case, all customer personal information and financial data recorded at the bank must be kept confidential and must not be given to other parties.

It also aims to protect the interests of customers regarding their finances and personal data (PPATK, 2019).

However, for tax purposes, the bank can provide information and show written evidence and letters regarding the financial condition of bank customers to the tax authorities. One of the tax interests in question is in the case of conducting a tax investigation.

In the tax investigation process, the act of opening bank secrecy can indeed be done. This is as stated in the Circular Letter of the Director-General of Taxes No. SE-06/PJ/2014 concerning Guidelines for the Implementation of Tax Crime Investigations ( SE-06/2014 ) and their Attachments.

For information, bank secrecy can refer to everything related to information about depositors and their deposits. This definition is by the provisions of Article 1 number 28 of Law no. 7/1992 concerning Banking stated Law 11/2020 concerning Job Creation (Banking Law).

In Appendix SE-06/2014, the disclosure of bank secrecy in the tax investigation process can be done in two ways. First, through a request, approval, or authorization from a depositor by the provisions in Article 44A of the Banking Law.

Article 44A of the Banking Law stipulates that a bank is required to provide written information regarding depositing customer information based on a written request, approval, or authorization from the bank’s customer.

Depositing customers are customers who place their funds in the form of deposits based on the bank’s agreement with the customer concerned.

Second, through an application for written permission to disclose bank secrets from the Financial Services Authority (OJK) by the provisions of Article 41 of the Banking Law and Article 69 of Law no. 21 of 2011 concerning the Financial Services Authority (OJK Law).

For information, Article 41 of the Banking Law in conjunction with Article 69 of the OJK Law states that OJK has the authority to issue written orders to banks to provide information and show written evidence and letters regarding the financial condition of certain depositors to tax officials for tax purposes.

In the process of opening bank secrets through an application for written permission, the investigator proposes a request for written permission to open bank secrets to the investigator’s superior. The request for the permit can be submitted without mentioning the account number of the taxpayer or depositing customer.

Requests for opening bank customer data are carried out by stating the identity of the taxpayer/depositor by the supporting documents.

The supporting documents in question are identity cards (KTP), passports, family cards, or certificates of establishment/company change.

Suppose the implementing unit of the tax investigation is the Regional Office of the Directorate General of Taxes (DGT). In that case, the Head of the Regional Office of the DJP shall submit a written request for permission to disclose bank secrets through the Director of Intelligence and Investigation.

Furthermore, the Director of Intelligence and Investigation follows up on the letter requesting written permission by issuing an official note requesting written permission to open bank secrets which are submitted to the Director-General of Taxes.

If the implementing unit of a tax investigation is the Directorate of Intelligence and Investigation, the Director of Intelligence and Investigation submits a memorandum of service requesting written permission to disclose bank secrets to the Director-General of Taxes.

Later, the Director-General of Taxes will submit a request for written permission to disclose the bank’s secret to the Minister of Finance. Next, the Minister of Finance submits a written request for permission to disclose bank secrets to the OJK.

Then, the OJK will order the bank that is being asked for information regarding the depositing customer to provide information and show the letters and evidence related to the financial condition of the depositing customer to the tax investigator on duty.

For attention, information, letters, and evidence regarding the financial condition of the customer requested by the tax investigator must be stated in the letter of request for information or evidence.

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