Upaya Indonesia dalam Mengatasi Profit Shifting oleh Perusahaan Google Tahun 2017

This study aims to analyze the profit shifting practices carried out by the multinational company Google in Indonesia and to evaluate the efforts made by the Indonesian government to address this issue. Profit shifting refers to corporate strategies used to transfer profits to low-tax jurisdictions to reduce tax liabilities, with Google employing a scheme known as the Double Irish Dutch Sandwich. This research uses a descriptive qualitative method with a library research approach, utilizing secondary data from journals, official reports, and other credible sources. The findings indicate that Indonesia faces significant challenges, both in terms of weak domestic regulations and limitations of the global tax system that has yet to fairly address digital economic activities. Nevertheless, Indonesia has undertaken strategic steps, including direct negotiations with Google, updating its tax regulations, and active participation in global initiatives such as the OECD’s 15 Action Plans on BEPS. The study concludes that to effectively counter profit shifting, Indonesia must continue strengthening international cooperation, reforming tax regulations, and enhancing transparency and the capacity of national tax institutions.