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Ministers to soon decide ‘the proper measure’ for Google
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Communications and Information Minister Rudiantara (left) hands over a USB drive to a technical officer before giving a presentation at the American Chamber of Commerce (Amcham) event in Jakarta. (Courtesy/Arian Ardie)
T
he Communications and Information Ministry, and the Finance Ministry will take joint measures in regard to Google, which recently has been accused of not paying tax from its advertisement revenue in Indonesia.
Communications and Information Minister Rudiantara said the two ministries would investigate further into indications of tax evasion committed by the US-based internet company in the Asia-Pacific from revenue made in Indonesia, which was predicted to be in the billions of US dollars.
"Wait until I talk with the Finance Ministry," he told reporters in Jakarta on Friday, responding to a question whether the government had considered suspending Google's operation or blocking its service in the country because of the issue.
Earlier, the Tax Office stated an investigation would be launched into the tech giant’s operations in Indonesia, as it had officially refused to cooperate with the tax authority, turning down a letter sent in April for an assessment of the company's taxes.
Google Indonesia claimed to have complied with existing government regulations since its operation in 2011, would continue to cooperate fully with local authorities and pay all applicable taxes.
However, Rudiantara said the subject of investigation was not Google Indonesia, but the Singapore-based Google Asia-Pacific that runs online services for users, advertisers and other content providers in the region, including Indonesia.
"The tax subject is not Google Indonesia, as it is not running the advertisement business, but the one based in Singapore. I will check with the Finance Ministry in which part of the discussion has stalled," he explained. (ags)
