The Indonesian tax authorities was not introduced by Google, the deal is postponed
As we reported, in mid-September, Google suspected of tax evasion in Indonesia. Google has refused to audit. In the opinion of the tax Inspectorate of Indonesia, denial of evidence of criminal activity, so an investigation was initiated.
In the second half of November, it was reported that Google will soon negotiate with the Indonesian tax authorities. Anonymous sources assured Reuters that the issue will be settled in the coming weeks. However, not everything went smoothly.
According to news reports, the offer made by Google, seemed the tax office insufficiently generous. This was announced by the head of the Department for special Affairs. According to him, as a result, the transaction may not be concluded this year.
«Since we are unable to agree, the investigation is ongoing. Now we want Google have reported and the IRS determines the amount of debt» — leads the source words of the investigator.
Google asked for more time to prepare reports, repeating earlier statements that the company has a representative office in Indonesia in 2011, pays all required taxes and will cooperate with the investigation.
If Google agrees with the calculations of the tax without a trial, she will have to pay the debt and a fine in the amount up to 150% of this amount. In the case of appeal to the court of upper limit of fine of up to 400%, if Google loses the case.