JAKARTA — Two major pulp and paper producers associated with widespread deforestation and land conflicts in Indonesia may also have skimped on $168 million in taxes through a web of offshore tax havens, a new report suggests. PT Toba Pulp Lestari (TPL), which operates a pulp and paper mill in North Sumatra, and Asia Pacific Resources International Holdings (APRIL), Indonesia’s second-biggest pulp producer, are both affiliated with Royal Golden Eagle (RGE), a conglomerate controlled by Indonesian billionaire Sukanto Tanoto. Though the companies operate in Indonesia, RGE is headquartered in nearby Singapore. It’s this arrangement that the new report, published by a coalition of 25 NGOs, says has allowed RGE to engage in profit shifting — transferring profits made from a high-tax jurisdiction to a lower-tax one. While this form of tax avoidance is not necessarily illegal, the NGOs estimate it deprived the Indonesian state of $168 million in potential tax revenue between 2007 and 2018. To arrive at this figure, the NGOs trawled through a treasure trove of offshore documents first revealed in February, known as “IndonesiaLeaks” and reported on in a series of news articles by a consortium of local media outlets. “Based on our research, it turned out that TPL and APRIL are owned by the same company, but in order to find it, we had to collect documents that were scattered in tax haven countries like Seychelles, the British Virgin Islands and Macau,” said Ferdian Yazid, head of natural resource governance at Transparency International Indonesia (TII), one…This article was originally published on Mongabay Läs mer