A tax expert says the Government needs to work on international tax treaties to stop multinational companies using a loophole to pay less tax in New Zealand.
Labour says the Facebook, which has 2.5 million customers in New Zealand, paid just over $14,000 to Inland Revenue last year, while Google paid 2% tax on its earnings.
Specialist tax consultant, Maurits van den Berg said it is likely the companies are working within the law.
He told Morning Report that Inland Revenue could look at the issue, but ultimately international treaties are out of date and should be changed.
