Posts Tagged ‘Tax Avoidance’

The next row with Indons

In Environment, Indonesia on 21/09/2016 at 4:45 am

Haze is Indonesia’s retaliation for helping Google avoid Indon taxes

Taz the line that the Indon VP or Indon minister will take soon.

Because Google uses S’pore as tax haven to avoid paying Indon taxes, Indons will keep on burning and killing 2,200 S’poreans a year*, a senior Indon official is sure to say. Never mind a lot more Indons are killed by haze.

Btw, expect the cybernuts from The Idiots – S’pore (or TISG) and TRE to start screaming that the PAP govt is allowing S’poreans to die so that Google can make money. And they’ll cheer on Indonesia as they cheered on Pinoy chief gangster for dissing S’pore.


This is what CNA, part of the constructive, nation-building media reported

Indonesia plans to pursue Alphabet Inc’s Google for five years of back taxes, and the search giant could face a bill of more than US$400 million for 2015 alone if it is found to have avoided payments, a senior tax official said.

Most of the revenue generated in the country is booked at Google’s Asia Pacific headquarters in Singapore. Google Asia Pacific declined to be audited in June, prompting the tax office to escalate the case into a criminal one, Hanif said.

“Google’s argument is that they just did tax planning,” Hanif said. “Tax planning is legal, but aggressive tax planning – to the extent that the country where the revenue is made does not get anything – is not legal.”

The tax office will summon directors from Google Indonesia who also hold positions at Google Asia Pacific, Hanif said, adding that it is working with the Indonesian police.

Already Google  has come under scrutiny from Australian authorities for paying tax in Singapore on advertising revenue generated in Australia, where the corporate tax rate is 30%.

Btw, Indons are saying Nasi Goreng is not a S’porean dish.

*A study that estimates there were 2,200 premature deaths in Singapore due to the 2015 haze crisis is “not reflective of the actual situation”, the country’s Ministry of Health (MOH) said on Monday (Sep 19). The study by researchers from Harvard and Columbia universities in the US also said there were more than 100,000 premature deaths caused by transboundary haze from Indonesian forest fires. 







Will this ever be reported here?

In Commodities, Economy, Media on 11/04/2015 at 3:01 pm

Glencore says it will stop funnelling sales from its Australian coal operations through Singapore, a move that comes amid growing concern in Canberra about the impact that alleged tax avoidance by multinational mining companies is having on the country’s tax take …

[It said this to an] Australian parliamentary inquiry scrutinising the use of Singapore marketing hubs by BHP Billiton, Rio Tintoand Glencore to reduce the mining groups’ tax bills.

Glencore told the committee that almost half its Australian exports flow through S’pore …

(FT report on Friday)

How Microsoft avoids US taxes using S’pore

In Uncategorized on 24/09/2012 at 5:10 am

The US started kicking the Swiss banks in the head over US citizens evading US taxes via Swiss banks.  Will the US “tighten the screws” on the likes of MS, and will S’pore get caught in the row? Watch and wait.

The hearing featured a case study involving Microsoft’s shifting of IP rights for software developed in America, and the earnings that flow from them, to divisions in lower-tax Puerto Rico, Ireland and Singapore. One witness, Professor Stephen Shay of Harvard Law School, pointed out that in 2011 these three units enjoyed an average effective tax rate of just 4% and managed to book $15.4 billion of pre-tax profit—55% of Microsoft’s worldwide total. Their 1,914 employees generated an eyebrow-raising $8m of profit each, compared with $312,000 each for the 88,000 working in the rest of Microsoft. Whether or not this apportionment of profits complies with transfer-pricing rules, it is “not consistent with a commonsense understanding of where the locus of Microsoft’s economic activity…is occurring,” said Mr Shay. The claim that fair transfer prices were paid is “just not credible given the bottom-line outcome,” he added.

In 2011, the Senate investigators asserted, Microsoft’s parent company was paid $4 billion by Ireland and Singapore for rights that the two subsidiaries used to generate three times that amount in royalty payments from other bits of the group …  A Microsoft man who was grilled at the hearing said the staffers’ sums ignored hefty, regular “buy-in” payments that the foreign subsidiaries have to make to the parent.