JAKARTA (TheInsiderStories) - Directorate General of Taxation (DJP) is strengthening taxation bilateral relationship with Her Majesty’s Revenue and Customs (HMRC), UK Tax Body, to discuss some of global tax issues, including over the top (OTT) companies such as Google and Facebook.
Director for International Taxation of DJP John Hutagaol said, the HMRC shared its experience in resolving Google tax problem which has become a global tax issue today. The same problem is also being encountered by Indonesia.
“The HMRC told us that they used diverted profit tax which is supported by most stakeholders,” he said, Wednesday (Mar 8).
The DJP and HMRC realized that resolving global tax issues needs a joint commitment and approach from all jurisdictions.
Currently, the globalized world economy has created opportunities to multinational enterprises to make aggressive tax planning while high net-worth individuals hide their assets in tax haven country, which reduces most countries’ tax base.
John hopes that the implementation of Automatic Exchange of Information (AEoI) standards can solve those issues. He said UK is ready to impose AEoI earlier in 2017 while Indonesia has some works to do to impose the AEoI standards in 2018.
Jakarta Special Tax Office head Mohammad Haniv who is also handling Google Indonesia’s tax issue said that the company is willing to pay taxes bill in the near future. However, he refused to reveal the details, include fines and other arrears to be paid by Google.
Previously, data from DJP shows that Google’s revenues before taxes reached US$5.6 million in the period of 2012-2015. Google also claimed that it had paid the taxes in the same period. (RF)