TEMPO.CO, Jakarta - Finance Ministry’s tax director general Ken Dwijugiasteadi said that his institution has set a target to collect taxes from US-based tech giant Google starting from late December 2016.
“It has to be this year,” Ken said at his office in Jakarta on Monday, November 7, 2016.
He added that the tax payment will be conducted after a tax audit, in which a close conference will be held, for the company is completed.
Ken added that the tax audit will serve as a forum for Google as the taxpayer and tax auditors to discuss the audit findings.
“Both parties will make their statements,” he said, adding that the statements would be recorded in a minute of the meeting.
Google Indonesia has not paid taxes, although it generates business revenues in Indonesia. In addition, Google has not registered its permanent establishment (BUT) in Indonesia, causing the government could not collect taxes to the company.
The Tax DG to this date has no revealed the total amount of taxes that must be paid by Google. However, it was predicted that the tax arrears amount to Rp5.5 trillion (US$423 million) over the last five years.
VINDRY FLORENTIN