Many tech companies have been having legal issues around the world in the last couple of years, and we’re talking major legal issues here, concerning antitrust lawsuits and tax evasion cases. Apple has been all over the news in the last couple of months, and the same goes for Google as well. Back in September, the Mountain View giant has been accused of tax evasion in Indonesia, and the government launched an official investigation. Since then, we really didn’t hear much about the case, but it seems like an agreement could be reached soon, read on.
According to a report by Reuters, Google is expected to reach a tax settlement with the Indonesian government soon. Based on the available info, the agreement will be reached in the next few weeks, says Reuters, and is basing this report on info which was provided by ‘familiar sources’. It seems like Google is ready to pay quite a bit of cash to Indonesia, both pay back taxes and fines, and in addition to that, the company will agree to a new calculation of profits in Indonesia. Following this info, the source contacted a tax office spokesman who refused to comment, same goes for Google’s spokesman, so it seems like we’ll have to wait a bit longer for an official confirmation.
Now, to give you some more info about this case. Back in September, a senior tax official said that Indonesia is suing Google for tax evasion in the last five years, while he also added that Google could be fined for more than $400 million for 2015 alone, so you can imagine how much would the company have to pay for all five years. It seems like the Indonesian government and Google were able to reach some sort of an agreement, at least if the source is to be believed, so we’re expecting Google to pay back less than expected, but that’s still a lot of money. This lawsuit occurred because most of Google’s revenue generated in Indonesia is booked at the company’s Asia Pacific headquarters in Singapore, which means Indonesia did not receive their fair share of tax money, or at least it seems that way. Stay tuned, we’ll report back as soon as we get some official info.