Government Force Google To Pay Tax

The Indonesian President Joko Widodo (Jokowi) shows the seriousness to pursue the tax liability of Google Asia Pacific Pte Ltd. Today senior officers of Google summoned to appear to the Directorate General of Taxation (Taxation Office).

detik.com

Director General of Taxation Ken Dwijugiasteadi confirmed that already have data that include the financial statements of Google. The data is the reference for the Directorate General of Taxation to calculate the tax liability to be paid by Google.

In the last meeting with Google, the Tax Directorate has submitted a nominal which should be paid by Google. But Google refused and bid nominal that has been submitted by the Directorate General of Taxation.

Head Office of the Special Tax Directorate M Haniv claimed previously have received data from one of Google's board of directors in Singapore about the company's revenue.

For that, comes a figure set as a tax to be paid by Google. That figure, according to Haniv not as big as it should be. It is considered as the number of peace so that in the next Google will be obedient in the payment of taxes.

In addition to data, the Tax Directorate has other powers to compel Google. That is its huge market. Google gains from Indonesia are very large. If such access is terminated, Google could suffer substantial losses.

Google action tax evasion does not only happen in Indonesia, but also experienced by many countries. Britain became one of the countries that succeeded in forcing Google to pay the tax. Many countries are pursuit rigors, because Google is not immoral.

The reason, Google makes tax planning that can avoid the various types of law. Google is placed representative office in the country with a lower tax rate. For example, in the Asia Pacific region, that is Singapore.

In business activities, Google uses the online scheme. If there are companies from any country would like to utilize the services of Google, then the entire administration solved with the online system, including for payment.

So when there is incoming revenue, Google managed to swallow them raw. This means that there are no tax breaks should be paid to countries where Google receives revenue. Google is only enough to pay taxes on the country where the representative office.

Whereas the laws are in force in many countries, especially Indonesia, whoever gets the benefit of economic activity in the country, they should pay taxes.
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