The IRD is demanding that Microsoft NZ pay more tax <https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12162745>. This is over the whole notorious business of “transfer pricing”, where sales by multinational corporations are recorded in jurisdictions where they attract less tax, rather than where the customers are located. Looks like there have already been some changes to this, though obviously the dispute would be over whether those changes are enough: From February 2018, the local unit's accounts were extended to include the distribution of computer software and hardware, having previously covered marketing. The change effectively means local product sales are being captured. Concomitant with this: The changes to Microsoft's revenue recognition also seem to route GST through the local unit, with GST payments of $8.1 million in the year ended June 30, compared to just $13,441 a year earlier. Man, that’s quite a jump. All of Microsoft’s NZ customers incurring just $13,441 in GST over an entire year ...