ASSESSMENT ON THE POTENTIAL BENEFIT OF IMPLEMENTATION OF COUNTRY BY COUNTRY REPORT TO TACKLE BEPS IN INDONESIA
Base Erosion and Profit Shifting (BEPS) spillover effect jeopardizes developing countries due to inexperience and lack of legislative resources. To deal with the BEPS, a robust implementation of BEPS Action Plan should be guarded. The common theme among study in this field is whether Country by Country Report (CbCR) is an effective tool to tackle BEPS. This paper highlight the potential value could be taken by developing countries in adopting CbCR handbook of effective tax risk assessment. Whether the high cost of CbCR implementation could be paid by employing CbCR effective tax risk assessment. The results suggest that in the CbCR tax risk assessment could be used to increase income tax revenue in the developing country such as Indonesia by combining it with domestic regulations as implementation on other BEPS action plan recommendations. However, there are certain problems of CbCR, confidentiality and minimalist information, need to be clear up to maximise the effectivity.