The present study investigates the habit in Indonesia of avoiding tax by means of hybrid mismatch arrangement schemes. A qualitative approach and data collection by means of library and field study was adopted in the present study. In-depth interviews were done with key respondents representing practitioners, academics, and tax authorities in Indonesia. The key result of the present study indicates that the habit of avoiding tax using hybrid mismatch arrangement schemes in Indonesia typically used debt/equity hybrid (financial instrument) by involving Indonesian corporations as payer. In addition, hybrid transfer and imported mismatch schemes prevail in Indonesia. Although there is no evidence of substitute payment and payment made to reverse hybrid schemes, these schemes are likely to be used in Indonesia under the current regulations and the taxation system. In general, the practice of tax avoidance using hybrid mismatch arrangement schemes in Indonesia is still limited.
|Title of host publication||Proceedings of the Asia Pacific Business and Economics Conference (APBEC 2018)|
|Publication status||Published - Jul 2019|