Microsoft New Zealand audited over tax diversion questions

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Published onJanuary 17, 2017

published onJanuary 17, 2017

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Microsoft New Zealand isbeing audited by the IRD(Inland Revenue Department). The audit is happening over the Microsoft branch’s use of “transfer pricing” – a practice that can be used by multinational companies in order to minimize tax costs.

“We believe tax is an issue that should be addressed at the global level, but having said that, we abide by the laws in all jurisdictions in which we operate.” Microsoft Spokesperson Brendan Boughen

It’s unclear how long the audit will take, or what – if any – repercussions it might have. As it stands now, it seems like things will be staying relatively quiet for the foreseeable future. Apart from the initial statements from Boughen, Microsoft New Zealand hasn’t commented on the audit or the circumstances around it.

While transfer pricing isn’t necessarily against the law, it can potentially be abused in ways that cross the line. As the audit takes place, the IRD will be trying to determine if any transfer pricing on the part of Microsoft would be over the line.

Radu Tyrsina

Radu Tyrsina has been a Windows fan ever since he got his first PC, a Pentium III (a monster at that time).

For most of the kids of his age, the Internet was an amazing way to play and communicate with others, but he was deeply impressed by the flow of information and how easily you can find anything on the web.

Prior to founding Windows Report, this particular curiosity about digital content enabled him to grow a number of sites that helped hundreds of millions reach faster the answer they’re looking for.

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Radu Tyrsina

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Microsoft New Zealand audited over tax diversion questions