Indonesia plans to go after Google for five years of back taxes and estimates the Internet giant owes over $400 million last year alone. Fred Katayama reports.
The tax man visited Google's Indonesia office Monday, and a senior tax official told Reuters the Internet search company could owe more than $400 million in back taxes for 2015 alone. Authorities plan to go after five years of back taxes. The head of the tax office's special cases branch, Muhammad Hanif, said, "Tax planning is legal, but aggressive tax planning ... is illegal." His office estimates PT Google Indonesia paid less than 0.1 percent of the total income and value-added taxes that it owed in 2015. Hanif says Indonesia has escalated the case into a criminal one because Google's Asia-Pacific headquarters in Singapore, where its Indonesian revenue is booked, declined to be audited. Google Indonesia says it continues to cooperate with local authorities and has paid all applicable taxes. Tax officials say Yahoo, Twitter, and Facebook have complied with their request to hand over tax reports of their Indonesian offices.