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