New Zealand law firm Kensington Swan should have its first offshore office operational by the end of the year – in the United Arab Emirates.

Firm chairman and partner Clayton Kimpton announced the move today.

“We haven’t chosen the market – we’ve followed the clients,” he said.

The new office would be in the country’s capital, Abu Dhabi and would house six lawyers, including managing partner Quentin Lowcay.

It would represent the first presence by a New Zealand law firm in the Middle East.

Cash-strapped companies are accusing Inland Revenue of delaying tax refunds according to a report in NBR's print edition.

They say they have overpaid their provisional tax and now demand their funds back.

Tax experts spoken to by NBR said the IRD is being "quite reserved" about paying GST refunds and provisional tax.

"We're seeing it quite a lot and have been for months," Kensington Swan partner Peter Speakman, who specialises in taxation, said.