{"id":11845,"date":"2016-09-19T12:09:08","date_gmt":"2016-09-19T12:09:08","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=11845"},"modified":"2016-09-19T12:09:08","modified_gmt":"2016-09-19T12:09:08","slug":"indonesia-to-investigate-google-over-possible-unpaid-taxes","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/indonesia-to-investigate-google-over-possible-unpaid-taxes.html","title":{"rendered":"Indonesia to Investigate Google Over Possible Unpaid Taxes"},"content":{"rendered":"

Indonesia to Investigate Google Over Possible Unpaid Taxes<\/span><\/strong><\/h2>\n

Indonesia to Investigate Google Over Possible Unpaid Taxes<\/strong> : Indonesia plans to pursue Google for five years of back taxes \u2014 a bill of more than $400 million for 2015 alone.<\/span><\/p>\n

The tax office believes that PT Google Indonesia paid less than 0.1 percent of the total income and value-added taxes it owed last year.<\/span><\/p>\n

A senior finance ministry official said on Thursday that Indonesia’s tax office will investigate Google for suspected unpaid taxes from billions of dollars worth of advertising revenue.<\/span><\/p>\n

Muhammad Hanif, head of the specials cases branch in the tax office, said Google’s refusal to cooperate after it was sent a letter in April requesting to be allowed to examine the company’s tax reports had raised suspicions.<\/span><\/p>\n

He told a news conference that the probe would not be launched until the end of the month at the earliest.<\/span><\/p>\n

PT Google Indonesia, incorporated in 2011, said it was complying with the government.<\/span><\/p>\n

“We continue to cooperate fully with local authorities and pay all applicable taxes,” a Google Indonesia spokesman said in an emailed response to questions.<\/span><\/p>\n

The government had also asked to examine the tax reports of the Indonesian offices of three other U.S. Internet based companies – Yahoo, Twitter and Facebook.<\/span><\/p>\n

Those three companies have complied, officials said.<\/span><\/p>\n

Yahoo and Google have formed Indonesian limited liability companies, while Twitter and Facebook operate branches of their Asia-Pacific offices in Indonesia.<\/span><\/p>\n

The government believes these companies owe income and value added tax on billions of dollars of revenue they generate from advertising in Indonesia, the tax office said.<\/span><\/p>\n

Hanif said Google’s Indonesian entity was only allocated around 4 percent of the total revenues generated from the country, and it was this amount that was taxed, which he described as too small and “unfair”.<\/span><\/p>\n

The communications ministry had estimated the value of digital advertising in Indonesia at about $800 million last year. The ministry said all of it was untaxed.<\/span><\/p>\n

There was no immediate explanation for the wide discrepancy of the two agencies’ estimates for digital advertising revenue.<\/span><\/p>\n

Indonesia is facing a sizeable revenue shortfall this year as the resource-rich country can no longer rely on commodity-related income<\/span><\/p>\n

Source<\/strong> : http:\/\/www.nbcnews.com\/tech\/tech-news\/indonesia-investigate-google-over-possible-unpaid-taxes-n650411<\/span><\/p>\n

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