It is one of the biggest companies in the world, but it seems that Apple might have some answering to do when it comes to its taxes.

The firm is under investigation following reports it has paid no tax for at least a decade in New Zealand.

Instead, Apple appears to have paid about £21 million ($26 million) in taxes to Australia since 2007.

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Apple is under investigation following reports it paid no tax for at least a decade in New Zealand (stock image)

WHY ISN'T APPLE PAYING TAX? Apple's New Zealand parent company is registered in Australia. The firm says that two countries have an agreement where tax is only paid in Australia. But some tax experts are questioning the unsual arrangement, given that Australia's corporate tax rate is 30 per cent higher than New Zealand's. Advertisement

The issue was brought to attention by the New Zealand Herald newspaper.

Apple's New Zealand parent company is registered in Australia, and the firm says that two countries have an agreement where tax is only paid in Australia.

The firm said: 'Apple is the largest taxpayer in the world and we appreciate and respect the role taxes play as necessary and important in our society.

'We follow the law and pay tax on everything we earn, wherever we operate.

'Apple aims to be a force for good and we're proud of the contributions we've made in New Zealand over the past decade.'

But some tax experts are questioning the unusual arrangement, given that Australia's corporate tax rate is 30 per cent higher than New Zealand's.

Speaking to the New Zealand Hearld, James Shaw, co-leader of the New Zealand Green Party, said: 'It is absolutely extraordinary that they are able to get away with paying zero tax in this country.

'It looks like their tax department is even more innovative than their product designers.'

Last year, Apple was named the biggest corporate tax avoider in the US after booking $218 billion (£175 billion) of profit offshore last year. Pictured is Tim Cook, CEO of Apple

This isn't the first time that Apple has been under scrutiny for its tax practices.

Last year, Apple was named the biggest corporate tax avoider in the US after booking $218 billion (£175 billion) of profit offshore.

The firm was able to save $65.08 billion (£51.1 billion) that it should have paid in tax thanks to its convoluted arrangements.

It is unclear how the New Zealand Herald plans to continue its investigation.

MailOnline has contacted Apple for comment.