Indonesia steps up pressure on Google in tax dispute

JAKARTA: Indonesia has threatened to prosecute US technology giant Google after the two sides failed to reach a settlement over unpaid taxes, reports said on Tuesday.

Indonesia is pursuing what officials say is $73 billion in taxes owed by Google for advertising revenue from as far back as 2011, when the search giant first established its Indonesian operations.

In December the tax office said it had rejected a settlement offer by Google, saying the amount was too small.

“If there are indications that they are using delaying tactics, it’s possible that we will have to take it to the next level of investigation,” Muhammad Haniv, the head of the tax office’s special-cases unit, was quoted as saying by Tempo.co news website.

“This will mean that police and prosecutors will be involved,” he said.

Google has said it has paid all applicable taxes and is cooperating fully with the Indonesian government.

Indonesia has vowed to examine the tax records of global Internet giants such as Google, Facebook and Twitter as it seeks to plug revenue shortfalls. — dpa