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Govt starts investigating Google tax case
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Batik prints surround Google's logo at the Google Indonesia headquarters. (Kompas.com/Oik Yusuf)
T
he government has started investigating a tax case centering on Google after talks between the internet giant and the Finance Ministry’s Directorate General of Taxation failed to resolve the issue, an official has said.
Google is required to pay taxes from 2011, said Director General of Taxation Ken Dwijugiasteadi as reported by tempo.co on Thursday.
The government says Google owes Rp 337.5 billion (US$25.28 million) in taxes, plus Rp 3 trillion in penalties as the tax office estimates that Google’s revenue reached Rp 6 trillion in 2015.
(Read also: Tax office threatens to probe Google case)
The move to investigate the tax case was initiated because Google failed to provide clarification over its advertisement transactions and server in Indonesia, Ken added.
He said his office would summon Google representatives on Thursday. “Anyone [in Google management] is responsible for the case,” Ken said.
Meanwhile, Directorate General of Taxation head M. Haniv said his office needed information regarding Google’s advertisement transactions to decide the amount of “special taxes” that should be paid by the over-the-top (OTT) company.
“After the amount of taxes has been decided, the government will seek advice from the House of Representatives,” Haniv said, adding that during the investigation, his office would involve police and prosecutors. (bbn)
