Menu
Oracle New Zealand squares off with IRD as tax probe advances

Oracle New Zealand squares off with IRD as tax probe advances

Oracle NZ has received and responded to the taxman's statement of position

Oracle NZ has responded to IRD's tax claims.

Oracle NZ has responded to IRD's tax claims.

Credit: Photo 73133640 © Josefkubes - Dreamstime.com

A week after Microsoft settled with New Zealand's Inland Revenue Department to the tune of $24.7 million, Oracle revealed it was facing off in a similar tax dispute.

Accounts filed over night update the state of Oracle's tax investigation, stating that in April Oracle was served with a statement of position by IRD in respect of historic transfer pricing arrangements.

Transfer pricing relates to payments for goods and services within a company group. These are supposed to be priced as if bought at arm's length. 

If, as IRD appears to believe, these have been over-priced then a higher level of tax deductible expense may end up being claimed by a taxpayer then is deemed reasonable.

"In June 2019, the company responded to the statement of position stating its disagreement with the IRD," a note in Oracle NZ's accounts said. "The company remains in discussions with IRD in relation to these matters."

Oracle said its advice was the treatment was "appropriate and in compliance with taxation laws".

Microsoft New Zealand was subject of a similarly long-running investigation, which it revealed last week had been settled.

In July, Cisco New Zealand revealed it too had settled a dispute with the taxman, paying $4.7 million in extra tax.

In May, SAP New Zealand also confirmed to Reseller News in May that it was in the early stages of a tax review by IRD.

Oracle NZ, which applied new international accounting standards for the first time this year, reported revenue of $146.5 million for the year ended 31 May, up from $139.3 million in 2018. 

Net profit was $1.5 million, up from $514,678.

The company reported $107.7 million worth of transactions with related parties during the year which it said were made at "arm's length" and on "standard supplier terms".


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags MicrosoftOracleciscoSAPinland revenue departmentIRD

Brand Post

What to expect from your IT Distributor

Whether you’re just starting out or you’ve been around since before the dot com rollercoaster, choosing the right distribution partner can be a pivotal factor in your success. This definitive guide outlines the traits that every IT partner needs to look for in their IT Distributor.

Featured

Slideshows

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners

This year’s Reseller News 30 Under 30 Tech Awards were held as an integral part of the first entirely virtual Emerging Leaders​ forum, an annual event dedicated to identifying, educating and showcasing the New Zealand technology market’s rising stars. The 30 Under 30 Tech Awards 2020 recognised the outstanding achievements and business excellence of 30 talented individuals​, across both young leaders and those just starting out. In this slideshow, Reseller News honours this year's winners and captures their thoughts about how their ideas of leadership have changed over time.​

Meet the Reseller News 30 Under 30 Tech Awards 2020 winners
Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security

This exclusive Reseller News Exchange event in Auckland explored the challenges facing the partner community on the cloud security frontier, as well as market trends, customer priorities and how the channel can capitalise on the opportunities available. In association with Arrow, Bitdefender, Exclusive Networks, Fortinet and Palo Alto Networks. Photos by Gino Demeer.

Reseller News Exchange Auckland: Beyond the myths — how partners can master cloud security
Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomes industry figures at 2020 Hall of Fame lunch

Reseller News welcomed 2019 inductees - Leanne Buer, Ross Jenkins and Terry Dunn - to the fourth running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing face of the IT channel ecosystem in New Zealand and what it means to be a Reseller News Hall of Fame inductee. Photos by Gino Demeer.

Reseller News welcomes industry figures at 2020 Hall of Fame lunch
Show Comments