Indonesia to investigate Google over possible unpaid taxes

Mon Sep 19, 2016 8:23pm EDT
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(This 15th September story corrects official's name throughout to Haniv)

By Gayatri Suroyo

JAKARTA (Reuters) - Indonesia's tax office will investigate Alphabet Inc's (GOOGL.O: Quote) Google for suspected unpaid taxes from billions of dollars worth of advertising revenue, a senior finance ministry official said on Thursday.

Muhammad Haniv, head of the specials cases branch in the tax office, said Google's refusal to cooperate after it was sent a letter in April requesting to be allowed to examine the company's tax reports had raised suspicions.

He told a news conference that the probe would not be launched until the end of the month at the earliest.

PT Google Indonesia, incorporated in 2011, said it was complying with the government.

"We continue to cooperate fully with local authorities and pay all applicable taxes," a Google Indonesia spokesman said in an emailed response to questions.

The government had also asked to examine the tax reports of the Indonesian offices of three other U.S. Internet based companies - Yahoo YHOO.O, Twitter (TWTR.N: Quote) and Facebook (FB.O: Quote).

Those three companies have complied, officials said.   Continued...

The Google logo adrons the entrance of Google Germany headquarters in Hamburg, Germany July 11, 2016. Picture taken July 11, 2016. REUTERS/Morris Mac Matzen