Getting Google to Pay

Any company that reaps profits in a given country is obliged to pay taxes. Google Indonesia is no exception. According to the Jakarta tax agency's calculations, out of revenues it gets from advertising alone, the US-based internet giant owes the state Rp550 billion annually.

But Google Indonesia disagrees. It argues that so far, the company's business transactions for internet products and services are carried out by Google Asia based in Singapore. Established in 2011 through the foreign capital investment scheme, Google Indonesia is only a representative office. On this ground, Google Indonesia believes it is not liable to paying taxes here so it has refused to be audited by the tax office.