Google faces Indonesia tax bill of $400 million
GOOGLE faces a bill of over US$400 million in Indonesia if authorities find it avoided taxes last year, an official said, as Jakarta began a probe into the US tech giant.
Indonesia last week announced it was launching an investigation into Google, alleging that the company had refused to cooperate with tax officials.
Google has insisted that it has paid all taxes due in Indonesia since opening its Jakarta offices in 2011.
On September 19 tax investigators visited Google’s office as the probe got under way, with senior official Muhammad Haniv telling AFP the California-based company had not fulfilled its obligations while earning millions of dollars in Southeast Asia’s top economy.
If authorities find that Google had not paid all its taxes for 2015, it could be forced to pay what it owes and then a hefty fine. This could add up to a total of some 5.5 trillion rupiah (about $420 million).
“Foreigners reap trillions of rupiah profit here but refuse to pay tax – that is not fair,” said Mr Haniv after visiting Google’s office.
“If necessary we will take this to court.”
Jakarta has also put pressure on other foreign tech behemoths such as Facebook and Yahoo over their tax arrangements inside Indonesia.