Google rejects to pay its tax obligation in Indonesia. The same cases are also found in different countries of which this giant search engine company defends not to fulfill its tax obligation.
This large online platform business firms in its stance that google indonesia is not running advertisement business thus it has no tax obligation. Besides, the company is not registered as the permanent establishment.
The communication and information minister rudiantara admitted that it is quite difficult to settle the issue of google has to pay tax. It is because being recognized that this largest search engine company runs no advertisement. It is only singapore google which runs such business.
Singapore google is being investigated by general directorate of taxation due to its tax disobedience meanwhile it runs the advertisement business. The general directorate admitted to have settled the meetings with singapore google company regarding the amount of tax to pay. Minister of communication and information added that it is a different case with indonesia google. It is not easy to demand tax obligation to such company who is based in another country, USA. It requires diplomacy about tax treaty or tax justice to be talked with hosted country.
The information and communication itself plans to coordinate with the finance minister regarding the tax problems which is allegedly involved google company. On the other hand, sri mulyani stressed that whoever runs the business in the country is tax subject and has to pay their obligation.
The government is on its stance to apply all the legal instrument regarding the tax subjects.
" Tax payer may have different argument but we have our tax regulation in Indonesia", finance minister stated.
Sri mulyani said that the authority will overview to have further bilateral talk regarding the foreign companies which operating in the country. They should register as permanent establishment in order for the government easily impose tax obligation
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