Google faces In­done­sia tax bill of $400 mil­lion

The Myanmar Times - - International Business -

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.

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