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Google must comply with Indonesian tax rules: Minister
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Cabinet Secretary Pramono Anung (left) and Finance Minister Sri Mulyani Indrawati address journalists on Singapore's stance on Indonesia's tax amnesty at the State Palace in Jakarta on Sept. 16, 2016. (JP/Ayomi Amindoni)
Finance Minister Sri Mulyani Indrawati has insisted that tech giant Google comply with national tax regulations.
Earlier, the tax office stated its intention to investigate Google for suspected unpaid taxes on billions of dollars of advertising revenue, following the company’s refusal to cooperate after a letter had been sent to the company in April with a request to examine its tax reports.
According to Sri Mulyani, the measure taken by the Directorate General of Taxation was based on the legal basis that all business transactions in Indonesia, including online business transactions, were subject to taxation.
"Of course, they have their own argument, but this is Indonesia, and we have our taxation law [...]. All activities in Indonesia must have a permanent establishment [BUT], making their business activity subject to taxation," she said after a limited Cabinet meeting at the State Palace on Friday.
She acknowledged that online-based business transactions had long been a complicated issue for many countries. However, Sri Mulyani reiterated that the government would continue to enforce the rules and regulations of the country. (ags)
