How Countries in European Union has Solved Problem of Tax Avoidance and Collection of Cross-border Transaction in an Integrated Common Market Tax Area. Optimizing Tax Collection in Indonesia, Lessons from European Union's Recovery of Collection Directive,

Abstract: The basic concept of capital flight regarding how easy capital can move in cross- border transactions of Adam Smith is one of the groundwork of this thesis. It cannot be denied that both developed countries and developing countries are facing the same problems regarding capital flight. However, European Union (EU) countries have been moving several steps further concerning cross-border transactions. Countries in EU has reached certain minimum standard of law enforcement in addressing Double Taxation problem within EU by helping each other through the recovery of tax claim directive, automatic exchange directive, and savings directive.