Economy, Sci & Tech

Indonesia to Fine Google $400m

Indonesia to Fine Google $400mIndonesia to Fine Google $400m

Indonesia has launched an investigation into Google, following allegations that the company refused to cooperate with tax officials.  The US-based company faces a bill of over $400 million if authorities conclude that it avoided taxes in 2015, France24 reports.

Google claims that it has paid all taxes due in Indonesia since opening its Jakarta office in 2011.

On 19 September, tax inspectors visited Google’s office. Senior official Muhammad Haniv told AFP that Google had not fulfilled its obligations while earning millions of dollars in Indonesia.

If authorities find that Google had not paid all its taxes for 2015, the company could be forced to pay what it owes plus a fine, Haniv added.

This could reach IDR5.5 trillion (approximately $420 million).

“Foreigners reap trillions of rupiah profit here but refuse to pay tax—that is not fair,” said Haniv after visiting Google’s office. “If necessary, we will take this to court.”

Haniv did not provide the exact amount of Google’s tax dues for the years before 2015. He said the probe was inspired by similar moves against Google in the European Union where the company is facing a series of fiscal probes.

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