Yogyakarta, 9 June 2023
The Master of Science and Doctoral Program of FEB UGM held a public lecture on the topic “Dissecting Transfer Pricing: Basic Principles and Legal Challenges”. The event was held online by presenting Dr. Yadyn Palebangan, S.H., M.H., Head of the District Attorney for East Luwu, South Sulawesi and Dr. Dian Kartika Rahajeng, S.E., M.Sc., Lecturer in the Department of Accounting FEB UGM as the speaker, and Bella Madiana Sumadi , M.Sc as the moderator. The public lecture was held with the aim of providing in-depth insight into the basic principles and legal challenges regarding the latest phenomenon, namely transfer pricing.
Dr. Yadyn Palebangan, S.H., M.H., explained material related to Transfer Pricing which is the issuance of prices in transactions between parties that have a special relationship (PMK Number 240/PMK.03/2014). Transfer Pricing and Paper Company Schemes aim to reduce the domestic tax burden of a company resulting in reduced state revenue by means of tax planning, namely cost manipulation or sales manipulation. The legal basis for regulation of Transfer Pricing is contained in Article 18 paragraph (3a) jo. paragraph (4) of the Income Tax Law and Article 2 of the VAT Law. Dr. Yadyn Palebangan, S.H., M.H., also delivered material on Transfer Pricing Tracing Techniques and Case Actions.
Furthermore, the material drivers linking transfer pricing challenges are continued by Dr. Dian Kartika Rahajeng, S.E., M.Sc., who explained that scheme transfer pricing can create opportunities for fraud and tax evasion which can lead to potential loss of state revenue. In this regard, Dr. Dian Kartika Rahajeng, S.E., M.Sc., also conveyed several alternative solutions that can be implemented in dealing with transfer pricing, namely conducting Advance Pricing Agreements (APAs), Mutual Agreement Procedures (MAPs between required tax authorities, Specific Anti Avoidance Rule (SAAR) , General Anti Avoidance Rule (GAAR), responsible reporting as well as anti-fraud education and anticipation of handling financial reports.
The presentation of the material went well and was followed by a question and answer session. Various questions submitted by the participants showed the high enthusiasm of the participants for the general lecture material. Through this public lecture, it is hoped that participants will be able to understand more about the transfer pricing phenomenon, understand the legal basis and potential legal action from irresponsible transfer pricing schemes and be more aware of transfer pricing issues.
