Dilemma of Authorities to Force Google paying taxes

The case of further talk between authority and large search engine company google is constrained in a hard way. This because of some of consideration such as fear of the company to flee from the state.

Previous days,  google rejects to pay taxes, authority then looks forward for legal investigation yet still not find a consensus for the company to do its obligation.

Head of the coordinating investment board, thomas lembong stated that coercive law enforcement might lead to the flee of the company abroad. While the government push to withdraw taxes, it is still under consideration too to ensure the investment in the country. There must be a fair approach which is advantageous for both, said this ex trade minister.  He added they coordinating investment board is on monitoring the case and look to find approaches and still not to convey the steps yet.

Thomas stressed that government should heed more concern on domestic digital enterprises who are obedient tax payers. They need to be protected from foreign similar business platform which are disobedient tax payers. Ex minister of trade further said in the midst of flourishing digital and internet which are globally operating lay a challenge for the government. There is not easy way to resolve the problem and intimate coordination is necessary especially tax heaven countries like north ireland and many others.

Google Indonesia was acknowledged not to pay taxes. This company which has headquarter in singapore claimed that it's not registered as permanent establishment thus it has no obligation to pay tax. The directorate of taxes under finance ministry summon the company to have a further talk regarding its obligation. In fact singapore google, the headquarter of indonesia has made meetings with directorate of taxation to talk about tax payment. However, after the finding of the taxpayer status, google rejected to pay taxes and the government look to enforce crime indication for the case.

Finance minister, sri mulyani then emphasized whoever running business in the state should pay taxes. " we have our own regulation of taxes in indonesia", said sri mulyani. Google on the other hand defended that google indonesia does not run the business of advertisement, it is google singapore which runs advertisement in indonesia. Thus google indonesia said not having obligation to pay tax. However, the government authority firms on their stance that whoever runs the business in the state must be taxpayer obedient.