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".