In­done­sia goes af­ter Google’s tax bill

The Myanmar Times - - International Business -

IN­DONE­SIA will launch in­ves­ti­ga­tions into Google af­ter the tech­nol­ogy gi­ant al­legedly re­fused to co­op­er­ate with the coun­try’s tax depart­ment, an of­fi­cial said.

Google has de­nied the al­le­ga­tions, declar­ing it had paid all taxes in In­done­sia since open­ing its Jakarta of­fices in 2011.

The gov­ern­ment has re­peat­edly as­serted that Google had out­stand­ing tax is­sues to re­solve.

Muham­mad Haniv, a se­nior of­fi­cial with Jakarta’s tax of­fice, said Google had re­fused a re­quest to al­low tax of­fi­cials to ex­am­ine its fi­nan­cial state­ments.

“We are now el­e­vat­ing this to an in­ves­ti­ga­tion be­cause they re­fused to be ex­am­ined. This could be clas­si­fied as a crim­i­nal of­fence,” Mr Haniv told AFP, adding Google gen­er­ates tens of mil­lions in ad­ver­tis­ing rev­enue but con­trib­uted lit­tle in tax.

In a state­ment Ja­son Ted­ja­suk­mana, the head of cor­po­rate com­mu­ni­ca­tions for Google In­done­sia, said the com­pany had al­ways worked closely with the gov­ern­ment and had “com­plied by pay­ing all taxes which ap­ply in In­done­sia”.

Jakarta has also ap­plied pres­sure on other for­eign tech be­he­moths such as Face­book and Ya­hoo over their tax ar­range­ments.

Global tech busi­nesses have flooded In­done­sia in re­cent years to cap­i­talise on the ex­plod­ing num­ber of in­ter­net users in the na­tion, which has an enor­mous youth pop­u­la­tion adept at us­ing smart­phones.

One third of In­done­sia’s 255 mil­lion have ac­cess to the in­ter­net but that num­ber is likely to in­crease as con­nec­tiv­ity im­proves across the sprawl­ing archipelago. –

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