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