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Google allegedly refuses to pay full taxes in Indonesia

n30phyte

In line with the many many tax evasion reports recently like the one about Apple in Japan and Europe, Google has allegedly been evading taxes from "advertising revenue" in Indonesia.

Google however responded with a statement that they are cooperating with the tax office.

Quote

The government had also asked to examine the tax reports of the Indonesian offices of three other U.S. Internet based companies - Yahoo, Twitter and Facebook.

 

Those three companies have complied, officials said.

 

Source(s): Reuters KitGuru

 

My opinion:

This is probably a way to scare the local companies to abide by tax laws since most of the time a lot of local companies don't follow them (very well). Maybe this is the government trying to show "We're not scared to go after these giants. You all better pay your taxes or we might slap your wrists harder than usual."

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Just now, ModuleLFS said:

I use dark theme so that quote looks empty lmao

Lol I'm sorry. I'm new to this. How do I change it for better visibility?

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Meanwhile whereas the biggest corporations in the world that happen to be American avoid taxes like motherfuckers, Voters debate themselves to death over "More taxes!" and "Less Taxes!" even though their contributions would be meaningless if the government could collect maybe 1% of what guys like Apple or Google would own, problem solved.

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6 minutes ago, Technous285 said:

Hit "Remove formatting" at the bottom edge of the text box when pasting in some copied text. the Tx icon (next to Size & Font dropdowns) will nuke ALL formatting in a post (so custom formatting will need to be redone).

 

 

9 minutes ago, n30phyte said:

Lol I'm sorry. I'm new to this. How do I change it for better visibility?

Thank you for actually doing that! Too many members do that and just leave it as is, and say "Hurr durr then use bright theme."

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13 minutes ago, Misanthrope said:

Meanwhile whereas the biggest corporations in the world that happen to be American avoid taxes like motherfuckers, Voters debate themselves to death over "More taxes!" and "Less Taxes!" even though their contributions would be meaningless if the government could collect maybe 1% of what guys like Apple or Google would own, problem solved.

i wish the US would make a law that says "if a companys number of employees based in US offices or work sites exceed X% of total workfoce, then said company's financial duties shall be equal to that of a US registrerd company".

 

That would cause one of two things:
mass migration of companys from the US

or

insane revenue gains for the US government.

 

It would also cause other countries to adopt the same type of taxation, because A: its a really good way to gain taxes from sneaky companies, and B: Because the downside would be that these companies would spread out, causing global employment to rise, as they would have to employ new employees from local areas, due to not being able to get existing employees to migrate/be allowed to immigrate to the new office locations.

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23 minutes ago, Prysin said:

i wish the US would make a law that says "if a companys number of employees based in US offices or work sites exceed X% of total workfoce, then said company's financial duties shall be equal to that of a US registrerd company".

 

That would cause one of two things:
mass migration of companys from the US

or

insane revenue gains for the US government.

 

It would also cause other countries to adopt the same type of taxation, because A: its a really good way to gain taxes from sneaky companies, and B: Because the downside would be that these companies would spread out, causing global employment to rise, as they would have to employ new employees from local areas, due to not being able to get existing employees to migrate/be allowed to immigrate to the new office locations.

Even a flat rate: 20% of your workforce in the US? 20% of the tax rate. It still means a lot more than today's Standart of "lol 0 we're Inc. In Ireland!" 

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5 hours ago, JoeyDM said:

 

Thank you for actually doing that! Too many members do that and just leave it as is, and say "Hurr durr then use bright theme."

They're not users - they're abusers

In case the moderators do not ban me as requested, this is a notice that I have left and am not coming back.

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10 hours ago, Misanthrope said:

Even a flat rate: 20% of your workforce in the US? 20% of the tax rate. It still means a lot more than today's Standart of "lol 0 we're Inc. In Ireland!" 

International companies who wish to do business in Indonesia are required to make a subsidiary here. OnePlus is not allowed to be sold officially through retail stores because they do not have a child company here or whatever. Spotify had to make a "Spotify Indonesia" company AFAIK. This supposedly allows them to also help the Indonesian economy grow and also to avoid tax evasion (theoretically)

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18 minutes ago, n30phyte said:

International companies who wish to do business in Indonesia are required to make a subsidiary here. OnePlus is not allowed to be sold officially through retail stores because they do not have a child company here or whatever. Spotify had to make a "Spotify Indonesia" company AFAIK. This supposedly allows them to also help the Indonesian economy grow and also to avoid tax evasion (theoretically)

In theory sure. In practice, the economy in Indonesia (or other tax heavens) it's so weak than even 0.001% of the tax rate means a lot but that's basically unfair coming from companies that do most of their business elsewhere anyway.

 

It's like an entire nation settling for a bribe instead of getting a fair cut of the business when it comes to taxes. 

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13 minutes ago, Misanthrope said:

In theory sure. In practice, the economy in Indonesia (or other tax heavens) it's so weak than even 0.001% of the tax rate means a lot but that's basically unfair coming from companies that do most of their business elsewhere anyway.

 

It's like an entire nation settling for a bribe instead of getting a fair cut of the business when it comes to taxes. 

At least the officials here are "actively" coming after those who evade taxes (their pockets are running empty)

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On 9/18/2016 at 1:17 AM, n30phyte said:

My opinion:

This is probably a way to scare the local companies to abide by tax laws since most of the time a lot of local companies don't follow them (very well). Maybe this is the government trying to show "We're not scared to go after these giants. You all better pay your taxes or we might slap your wrists harder than usual."

Completely wrong, Every country in the world is going after the tech giants that, through legal loopholes make the sales occur in Ireland and other 'low tax states' Thus don't have to report the revenue to the country where the sale actually happened. It's like with apple's sales where you'd physically by the product in Australia, and the sale would occur in Ireland. Why? Tax loophole.

 

This is not a politician beating their chest, to look good for the public, but a systemic issue that Most countries are looking to close.

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On 9/17/2016 at 11:28 AM, Misanthrope said:

Meanwhile whereas the biggest corporations in the world that happen to be American avoid taxes like motherfuckers, Voters debate themselves to death over "More taxes!" and "Less Taxes!" even though their contributions would be meaningless if the government could collect maybe 1% of what guys like Apple or Google would own, problem solved.

I'm in favor of flat-taxes at 12-20%.  I'm also in favor that if a company avoids taxes, and doesn't work for the betterment of the community it is within, as well as the country it was founded in, or if it goes against the once original goals of it's creator(see Ford).  Just nationalize the company.  This also should create a situation where companies would fear screwing up.  They try to leave -nationalized, they go against the interest of the country and the people -nationalized.  

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Maybe if tax codes were simpler people could follow them more easily and tax lawyers wouldn't be a cost.

Software Engineer for Suncorp (Australia), Computer Tech Enthusiast, Miami University Graduate, Nerd

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