Indonesia challenges Google to disclose financial reports
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The Directorate General of Taxation will intensify its investigation on the suspected unpaid taxes by tech behemoth Google, claiming that the company’s tax settlement offer was too small.
The government said that it would continue investigating Google as it has gathered preliminary evidence indicating that the firm has allegedly committed a criminal act.
“Next year, it is not going to be about a tax settlement anymore,” Muhammad Haniv, the head of the Taxation Directorate General’s Jakarta branch, who is also the main investigator in the case, said on Tuesday.
“We have to accelerate the process. We want Google to disclose its financial reports and the tax office will calculate the tax owed,” he said.
He said the consequence of the tax office’s findings would be that Google had to pay taxes owed plus a 150 percent penalty.
Questions & Answers
Q.Why is the Indonesian tax office continuing its investigation into Google?
Why is the Indonesian tax office continuing its investigation into Google?
The tax office is continuing its investigation because Google's tax settlement offer was deemed too small. Preliminary evidence suggests the company may have committed a criminal act, according to the government.
Q.What is the primary goal of the Directorate General of Taxation in this case?
What is the primary goal of the Directorate General of Taxation in this case?
The main goal is for Google to disclose its financial reports so the tax office can calculate the exact amount of tax owed. This is to accelerate the process beyond just a settlement.
Q.What penalty could Google face if the tax office's findings confirm unpaid taxes?
What penalty could Google face if the tax office's findings confirm unpaid taxes?
If the tax office finds that taxes are owed, Google would be required to pay the outstanding amount. Also, a 150 percent penalty would be imposed on top of the owed taxes.
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