According to recent reports, authorities visited Google’s Jakarta offices multiple times in the past few weeks to collect information related to tax payments. Not only that, but they also asked for meetings with senior executives of the company.
Google, however, seems to think that it has already paid all of its taxes in Indonesia, and it says that it is cooperating with the government. That’s despite the fact that Indonesian authorities say the company may owe as much as five years’ worth of in back taxes — which, according to a Reuters report, could amount to more than $400 million.
“Everyone must comply, whoever they may be,” said head of special taxpayers at Indonesia’s Finance Ministry, Muhammad Haniv, in an interview with Bloomberg. “If you refuse to be audited, then we will keep chasing you.” If companies don’t pay their taxes, Indonesia may block the websites of those companies — so if Google doesn’t pay its taxes, Indonesian residents may not have access to Google.com.
The Indonesian government seems to be following in the footsteps of European authorities and pushing for highly profitable internet companies to pay more taxes. According to Bloomberg, there’s pressure for more taxes to be paid, especially considering the fact that the government’s revenue this year is expected to suffer a 218 trillion rupiah, or $17 billion, shortfall.
Earlier this year, Google’s Paris headquarters were also raided by French authorities, seeking a hefty $1.76 billion in back taxes. Not only that, but in August Apple was ordered by the European Commission to pay a whopping $14.5 billion in taxes to the Irish government.
