CRYPTO TAXATION AND FINANCIAL REPORTING IN THE CONTEXT OF PANCASILA

Triana Eva Adiningsih

Abstract


Abstrak - Perpajakan Kripto dan Pelaporan Keuangan pada Konteks Pancasila

Tujuan Utama – Studi ini mengevaluasi perubahan dalam perpajakan perdagangan kripto sehubungan dengan kesesuaiannya dengan nilai Pancasila dan opsi solusi.

Metode – Penelitian ini menggunakan metode tinjauan literatur nonsistematis. Kami menggambarkan simulasi matematika dan penjabaran nilai Pancasila dalam kaitannya dengan transaksi kripto dan perpajakan.

Temuan Utama – Penelitian ini menunjukkan bahwa implementasi pajak final berpihak kepada pemilik modal besar. Keberpihakan ini disebabkan karena adanya perbandingan terbalik antara persentase target keuntungan yang harus diperolah trader dan lapisan penghasilan. Implikasinya beban pajak bertambah dan laporan keuangan turut berpengaruh.

Implikasi Teori dan Kebijakan – Perubahan peraturan pajak untuk perdagangan kripto tidak sesuai dengan nilai Pancasila. Kami menyarankan untuk merevisi aturan menjadi pajak progesif final dalam transaksi kripto.

Kebaruan Penelitian – Penelitian ini menggunakan perhitungan objektif dengan rumus yang belum pernah diterbitkan sebelumnya dan menggunakan paradigma Pancasila.

 

Abstract - Crypto Taxation and Financial Reporting in the Context of Pancasila

Main Purpose - This study evaluates changes in the taxation of crypto trading to its compatibility with Pancasila values and solution options.

Method - This study uses a non-systematic literature review method. We describe the mathematical simulation and elaboration of Pancasila values to crypto transactions and taxation.

Main Findings - This study shows that implementing the final tax favors large capital owners. This favoritism is due to the inverse ratio between the percentage of target profits traders must earn and the income layer. The implication is that the tax burden increases, and the financial statements are affected.

Theory and Practical Implications - The change in tax regulations for crypto trading is incompatible with the values of Pancasila. We suggest revising the rules to a final progressive tax on crypto transactions.

Novelty - This study uses objective calculations with formulas that have never been published before and uses the Pancasila paradigm.


Keywords


cryptocurrency; pancasila; profit target; progressive tax

Full Text:

PDF

References


Abra, E. H., & Wahanisa, R. (2020). The Constitutional Court Ultra Petita as a Protection Form of Economic Rights in Pancasila Justice. Journal of Indonesian Legal Studies, 5(1), 187–224. https://doi.org/10.15294/jils.v5i1.35965

Akyildirim, E., Corbet, S., Sensoy, A., & Yarovaya, L. (2020). The Impact of Blockchain Related Name Changes on Corporate Performance. Journal of Corporate Finance, 65, 101759. https://doi.org/10.1016/j.jcorpfin.2020.101759

Aliu, F., Nuhiu, A., Krasniqi, B. A., & Jusufi, G. (2021). Modeling the Optimal Diversification Opportunities: The Case of Crypto Portfolios and Equity Portfolios. Studies in Economics and Finance, 38(1), 50-66. https://doi.org/10.1108/sef-07-2020-0282

Almeida, J., & Gonçalves, T. C. (2023). A Systematic Literature Review of Investor Behavior in the Cryptocurrency Markets. Journal of Behavioral and Experimental Finance, 37, 100785. https://doi.org/10.1016/j.jbef.2022.100785

Athanassiou, P. L. (2021). Shunning Banks or Depending on Them? Crypto Markets and the Rise of Crypto-Friendly Banking. European Company and Financial Law Review, 18(3), 321-337. https://doi.org/10.1515/ecfr-2021-0015

Anselmi, G., & Petrella, G. (2023). Non-Fungible Token Artworks: More Crypto than Art? Finance Research Letters, 51, 103473. https://doi.org/10.1016/j.frl.2022.103473

Athanassiou, P. L. (2021). Shunning Banks or Depending on Them? Crypto Markets and the Rise of Crypto-Friendly Banking. European Company and Financial Law Review, 18(3), 321-337. https://doi.org/10.1515/ecfr-2021-0015

Avgouleas, E., & Seretakis, A. L. (2023). How Should Crypto Lending Be Regulated Under EU Law? European Business Organization Law Review, 24(3), 421-438. https://doi.org/10.1007/s40804-023-00293-3

Az-Zahra, R., Ulum, I., & Irawan, D. (2022). The Basic Principles of Accountant Ethics: Al-Baqarah and Pancasila Perspectives. Jurnal Akuntansi Multiparadigma, 13(2), 337-351. https://doi.org/10.21776/ub.jamal.2022.13.2.25

Beattie, V. (2014). Accounting Narratives and the Narrative Turn in Accounting Research: Issues, Theory, Methodology, Methods and a Research Framework. British Accounting Review, 46(2), 111–134. https://doi.org/10.1016/j.bar.2014.05.001

Bouri, E., Kamal, E., & Kinateder, H. (2023). FTX Collapse and Systemic Risk Spillovers from FTX Token to Major Cryptocurrencies. Finance Research Letters, 56. https://doi.org/10.1016/j.frl.2023.104099

Chambers, R. J. (1966). Accounting and Analytical Methods: A Review Article. Journal of Accounting Research, 4(1), 101–118. https://doi.org/https://doi.org/10.2307/2490144

Chan, S., Chu, J., Zhang, Y., & Nadarajah, S. (2022). An Extreme Value Analysis of the Tail Relationships between Returns and Volumes for High Frequency Cryptocurrencies. Research in International Business and Finance, 59, 101541. https://doi.org/10.1016/j.ribaf.2021.101541

Chatlani, R. (2022). The Income Tax Landscape in Latin America: A New Crypto Hub? Bulletin for International Taxation, 76(8). https://doi.org/10.59403/1mw08tc

Chhatwani, M., & Parija, A. K. (2023). Who Invests in Cryptocurrency? The Role of Overconfidence among American Investors. Journal of Behavioral and Experimental Economics, 107, 102107. https://doi.org/10.1016/j.socec.2023.102107

Cong, L. W., Landsman, W., Maydew, E., & Rabetti, D. (2023). Tax-Loss Harvesting with Cryptocurrencies. Journal of Accounting and Economics, 76(2-3), 101607. https://doi.org/10.1016/j.jacceco.2023.101607

Darmayasa, I. N. (2019). Preskriptif Ketentuan Umum Perpajakan dalam Perspektif Akuntansi Pancasila. Jurnal Akuntansi Multiparadigma, 10(1), 22–41. https://doi.org/10.18202/jamal.2019.04.10002

Davenport, S. A., & Usrey, S. C. (2023). Crypto Assets: Examining Possible Tax Classifications. Journal of Emerging Technologies in Accounting, 20(2), 55-70. https://doi.org/10.2308/jeta-2022-033

Dupuis, D., & Gleason, K. (2021). Money Laundering with Cryptocurrency: Open Doors and the Regulatory Dialectic. Journal of Financial Crime, 28(1), 60-74. https://doi.org/10.1108/jfc-06-2020-0113

Edwards, F. R., Hanley, K., Litan, R., & Weil, R. L. (2019). Crypto Assets Require Better Regulation: Statement of the Financial Economists Roundtable on Crypto Assets. Financial Analysts Journal, 75(2), 14-19. https://doi.org/10.1080/0015198x.2019.1593766

Feng, W., Wang, Y., & Zhang, Z. (2018). Informed Trading in the Bitcoin Market. Finance Research Letters, 26, 63–70. https://doi.org/10.1016/j.frl.2017.11.009

Finlay, J. E. (2021). Women’s Reproductive Health and Economic Activity: A Narrative Review. World Development, 139, 105313. https://doi.org/10.1016/j.worlddev.2020.105313

Fujiki, H. (2021). Crypto Asset Ownership, Financial Literacy, and Investment Experience. Applied Economics, 53(39), 4560-4581. https://doi.org/10.1080/00036846.2021.1904125

Goforth, C. R. (2021). Regulation of Crypto: Who is the Securities and Exchange Commission Protecting? American Business Law Journal, 58(3), 643-705. https://doi.org/10.1111/ablj.12192

Hammitt, J. K. (2021). Accounting for the Distribution of Benefits & Costs in Benefit-Cost Analysis. Journal of Benefit-Cost Analysis, 12(1), 64–84. https://doi.org/10.1017/bca.2020.29

Hossain, M. B. (2023). Acquiring an Awareness of the Latest Regulatory Developments Concerning Digital Assets and Anti-Money Laundering. Journal of Money Laundering Control, 26(6), 1261-1268. https://doi.org/10.1108/jmlc-10-2022-0147

Hsieh, S., & Brennan, G. (2022). Issues, Risks, and Challenges for Auditing Crypto Asset Transactions. International Journal of Accounting Information Systems, 46, 100569. https://doi.org/10.1016/j.accinf.2022.100569

Hubbard, B. (2023). Decrypting Crypto: Implications of Potential Financial Accounting Treatments of Cryptocurrency. Accounting Research Journal, 36(4/5), 369-383. https://doi.org/10.1108/arj-10-2022-0279

Jayasuriya, D. D., & Sims, A. (2023). From the Abacus to Enterprise Resource Planning: Is Blockchain the Next Big Accounting Tool? Accounting, Auditing & Accountability Journal, 36(1), 24-62. https://doi.org/10.1108/aaaj-08-2020-4718

Luckner, C. G. V., Reinhart, C. M., & Rogoff, K. (2023). Decrypting New Age International Capital Flows. Journal of Monetary Economics, 138, 104–122. https://doi.org/10.1016/j.jmoneco.2023.05.015

Lyócsa, Š., Molnár, P., Plíhal, T., & Širaňová, M. (2020). Impact of Macroeconomic News, Regulation and Hacking Exchange Markets on the Volatility of Bitcoin. Journal of Economic Dynamics and Control, 119, 103980. https://doi.org/10.1016/j.jedc.2020.103980

Ma, R., Marshall, B. R., Nguyen, N. H., & Visaltanachoti, N. (2022). Does Bitcoin Liquidity Resemble the Liquidity of Other Financial Assets? Australian Journal of Management, 47(4), 729-748. https://doi.org/10.1177/03128962211069615

Meyer, E. A., Sandner, P., Cloutier, B., & Welpe, I. M. (2023). High on Bitcoin: Evidence of Emotional Contagion in the YouTube Crypto Influencer Space. Journal of Business Research, 164, 113850. https://doi.org/10.1016/j.jbusres.2023.113850

Mohsin, M., Naseem, S., Zia‐ur‐Rehman, M., Baig, S. A., & Salamat, S. (2020). The Crypto‐Trade Volume, GDP, Energy Use, and Environmental Degradation Sustainability: An Analysis of the Top 20 Crypto‐Trader Countries. International Journal of Finance & Economics, 28(1), 651-667. https://doi.org/10.1002/ijfe.2442

Neumann, J. V., & Morgenstern, O. (1944). Theory of Games and Economic Behavior. Princeton University Press.

North, D. C. (2012). Institutions, Institutional Change, and Economic Performance. Cambridge University Press. https://doi.org/10.1017/CBO9780511808678

Sabah, N. (2020). Cryptocurrency Accepting Venues, Investor Attention, and Volatility. Finance Research Letters, 36, 101339. https://doi.org/10.1016/j.frl.2019.101339

Salampessy, Z., Triyuwono, I., Irianto, G., & Hariadi, B. (2018). Pancasila Paradigm: Methodology of Wawasan Nusantara for Accounting of Pancasila. Australasian Accounting Business and Finance Journal, 12(1), 102–117. https://doi.org/10.14453/aabfj.v12i1.7

Sauce, L. (2022). The Unintended Consequences of the Regulation of Cryptocurrencies. Cambridge Journal of Economics, 46(1), 57-71. https://doi.org/10.1093/cje/beab053

Sebastião, H., & Godinho, P. (2020). Bitcoin Futures: An Effective Tool for Hedging Cryptocurrencies. Finance Research Letters, 33, 101230. https://doi.org/10.1016/j.frl.2019.07.003

Sirajudin. (2013). Interpretasi Pancasila dan Islam untuk Etika Profesi Akuntan Indonesia. Jurnal Akuntansi Multiparadigma, 4(3), 330–507. https://doi.org/10.18202/jamal.2013.12.7209

Sitorus, J. H. E. (2015). Membawa Pancasila dalam Suatu Definisi Akuntansi. Jurnal Akuntansi Multiparadigma, 6(2), 175–340. https://doi.org/10.18202/jamal.2015.08.6021

Svogun, D., & Bazán-Palomino, W. (2022). Technical Analysis in Cryptocurrency Markets: Do Transaction Costs and Bubbles Matter? Journal of International Financial Markets, Institutions and Money, 79, 101601. https://doi.org/10.1016/j.intfin.2022.101601




DOI: http://dx.doi.org/10.21776/ub.jamal.2023.14.3.34

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Triana Eva Adiningsih

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.