1,810
15
Research Paper, 2 pages (450 words)

Google may face more than $400 million indonesia tax bill for 2015

Advertising We'll write a high-quality original custom paper on Google may face more than $400 million indonesia tax bill for 2015 just for you with a 15% discount for the 1st order Use a Discount Use a Discount

Indonesia plans to pursue Alphabet Inc.’sGooglefor five years of back taxes, and the search giant could face a bill of more than $400 million for 2015 alone if it is found to have avoided payments, a senior tax official said.

Muhammad Hanif, head of the tax office’s special cases branch, told Reuters its investigators went to Google’s local office in Indonesia on Monday.

The tax office alleges PT Google Indonesia paid less than 0. 1 percent of the total income and value-added taxes it owed last year.

Asked to respond to Hanif’s comments, Google Indonesia reiterated a statement made last week in which it said it continues to cooperate with local authorities and has paid all applicable taxes.

If found guilty, Google could have to pay fines of up to four times the amount it owed, bringing the maximum tax bill to 5. 5 trillion rupiah ($418 million) for 2015, Hanif said. He declined to provide an estimate for the five-year period.

Most of the revenue generated in the country is booked at Google’s Asia Pacific headquarters in Singapore. Google Asia Pacific declined to be audited in June, prompting the tax office to escalate the case into a criminal one, Hanif said.

” Google’s argument is that they just did tax planning,” Hanif said. ” Tax planning is legal, but aggressive tax planning — to the extent that the country where the revenue is made does not get anything — is not legal.”

The tax office will summon directors from Google Indonesia who also hold positions at Google Asia Pacific, Hanif said, adding that it is working with the Indonesian police.

Globally, it is rare for a state investigation of corporate tax structures to be escalated into a criminal case.

It normally takes at least three years for an Indonesian court to make a decision on a tax criminal case, said Yustinus Prastowo, executive director of the Center for Indonesia Taxation Analysis.

The tax office is planning to chase back taxes from other companies that deliver content through the internet (over-the-top service providers) in Indonesia, Hanif said.

The Indonesiancommunicationand information ministry is working on a new regulation for OTT providers, and the tax office has proposed that a company with a ” network presence” in Indonesia should also be subject to taxation.

Total advertising revenue for the industry is estimated at $830 million a year, with Google and Facebook Inc. accounting for around 70 percent of that, according to Hanif.

A joint study by Google and Singapore state investor Temasek released earlier this year, however, estimated the size of Indonesia’s digital advertising market at $300 million for 2015.

(Reporting by Gayatri Suroyo and Eveline Danubrata; Editing by Edwina Gibbs and Alexander Smith)

Thanks for voting and helping us improve!
Google may face more than $400 million indonesia tax bill for 2015. Page 1
Google may face more than $400 million indonesia tax bill for 2015. Page 2
Google may face more than $400 million indonesia tax bill for 2015. Page 3
Google may face more than $400 million indonesia tax bill for 2015. Page 4

The paper "Google may face more than $400 million indonesia tax bill for 2015" was contributed to our database by a real student. You can use this work as a reference for your own writing or as a starting point for your research. You must properly cite any portion of this sample before using it.

If this work is your intellectual property and you no longer would like it to appear in our database, please request its deletion.

Ask for Removal

Create a Citation on Research Paper

References

PaperPrompt. (2021) 'Google may face more than $400 million indonesia tax bill for 2015'. 28 November.

Reference

PaperPrompt. (2021, November 28). Google may face more than $400 million indonesia tax bill for 2015. Retrieved from https://paperprompt.com/google-may-face-more-than-400-million-indonesia-tax-bill-for-2015/

References

PaperPrompt. 2021. "Google may face more than $400 million indonesia tax bill for 2015." November 28, 2021. https://paperprompt.com/google-may-face-more-than-400-million-indonesia-tax-bill-for-2015/.

1. PaperPrompt. "Google may face more than $400 million indonesia tax bill for 2015." November 28, 2021. https://paperprompt.com/google-may-face-more-than-400-million-indonesia-tax-bill-for-2015/.


Bibliography


PaperPrompt. "Google may face more than $400 million indonesia tax bill for 2015." November 28, 2021. https://paperprompt.com/google-may-face-more-than-400-million-indonesia-tax-bill-for-2015/.

Work Cited

"Google may face more than $400 million indonesia tax bill for 2015." PaperPrompt, 28 Nov. 2021, paperprompt.com/google-may-face-more-than-400-million-indonesia-tax-bill-for-2015/.

Get in Touch with Us

Do you have more ideas on how to improve Google may face more than $400 million indonesia tax bill for 2015? Please share them with us by writing at the [email protected]