6 Mar 2016

Expert warns over taxing multinationals

4:41 pm on 6 March 2016

Caution is needed over tax changes in New Zealand for multinational corporations such as Facebook, an expert says.

Facebook

Facebook Photo: 123RF

Facebook is set to pay millions of pounds more in tax in Britain following a major overhaul of its tax structure.

Tax expert Robin Oliver said that just because a company sold something like advertising into New Zealand did not mean the government had the right to tax it, particularly if it did not have a substantial physical presence in the country.

The latest figures showed the company paid just over $3000 in income tax in New Zealand for the 2014 year.

It filed a profit of only $12,000 from revenue of nearly $1.2 million, stating that after tax and expenses it had made a loss of $31,000.

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