Facebook to change practices following accusations social media giant is dodging taxes

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Facebook is changing its tax practices following widespread criticism of the social media giant from around the world, a move that will see the company being held to account here in New Zealand.

Following international backlash the multi-billion dollar company has voluntarily overhauled its tax system.

This means by early 2019 its income will be recorded in the country it's received in.

Up until now much of the company's income had been recorded in Ireland, a country which has half the corporate tax rate of New Zealand.

Records show that in 2014 Facebook paid just $43,000 tax in New Zealand, a fraction of what it should have.

The Government are working on a bill to target other multi-national companies like Google and Apple who employ similar practices when it comes to their tax practices. 

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