Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)

Beneficial Owners’ Interpretation of Implementing Tax Treaties and Implications About the Certainty of Corporate Funding Through Global Bond Issuance: A Case Study of a Decision by the Supreme Court of the Republic of Indonesia

Authors
Lastri Defani Sinambela, Indrayagus Slamet
Corresponding Author
Lastri Defani Sinambela
Available Online 31 May 2021.
DOI
https://doi.org/10.2991/assehr.k.210531.042How to use a DOI?
Keywords
Beneficial Owner, Tax Treaty, OECD Commentary
Abstract

The purpose of this study is to analyze the beneficial owner interpretation used in the Supreme Court of the Republic of Indonesia’s decision Number 133/B/PK/PJK/2017, between PT PLN and DGT, and to assess the implications for Majapahit Holding BV’s funding by issuing global bonds. Many cases brought to the tax court involve differences in interpretation, and many companies form SPVs abroad to issue global bonds. Our analysis uses a case study approach, and our qualitative research design incorporates numerous data sources (data triangulation). The study details the consequences of the decision and the rules about beneficial ownership in Indonesia (stated in PER-10/PJ/2017). Different interpretations of beneficial ownership occur because facts about SPVs are missing. The Indonesian tax authorities need to request documents to prove who was the actual beneficial owner. An entity can be established as a beneficial owner if it has fulfilled the requirements contained in the OECD commentary about limitations on benefits.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
31 May 2021
ISBN
978-94-6239-385-1
ISSN
2352-5398
DOI
https://doi.org/10.2991/assehr.k.210531.042How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Lastri Defani Sinambela
AU  - Indrayagus Slamet
PY  - 2021
DA  - 2021/05/31
TI  - Beneficial Owners’ Interpretation of Implementing Tax Treaties and Implications About the Certainty of Corporate Funding Through Global Bond Issuance: A Case Study of a Decision by the Supreme Court of the Republic of Indonesia
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 332
EP  - 340
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.042
DO  - https://doi.org/10.2991/assehr.k.210531.042
ID  - Sinambela2021
ER  -