The Indonesian tax authority are requesting Google to pay up billions of dollars in taxes from advertising revenue the company has been soliciting from the 300 million populated country. A probe was initiated when the Alphabet owned company refused to comply the governments demand for documents filed for taxation to be handed for verification. This raised suspicion on Googles long standing involvement in tax evasion tactics in Asian countries, and Indonesia now seeks arbitration.

Google established its office in Indonesia in 2011 and has since confirmed that it has been paying taxes regularly, but being revenue streams are paid online for advertising buys on its video streaming channel YouTube or Ad placement in its Search, tracing the dollar flow can only be ascertained with the search titans compliance. Silicon valley tech juggernauts are known to use safe havens to stash their profits and use countries with low tax policy to headquarter, Facebook was also in the news recently for similar tactic.

In Malaysia, its no different, these technology have become part of our society and its difficult to separate them from our daily lives, but while we continue to use them they are also reaping billions in revenue and yet have contributed very little to the country as far as we know. Both Google and Facebook have satellite offices in KL, but their tax returns are somewhat questionable, as no official reports are available on country by country contribution of sales. But just ask any media agency or digital specialist, they will all attest to the millions their clients place budget on these platforms. By right like any other corporate company registered in the country, these online tech firms have to file in their taxes based on their Profit and Loss and should subject to local income tax regulations.

Footnote: Google made $74.5 billion in 2015.