Auckland Council is investigating a complaint of a "racist" employee who was inspecting a clinic in Mission Bay.
The building inspector was doing a final inspection at the clinic belonging to Dr Shahrzad Khayami MacAvoy.
Upon learning the origin of the orthodontist's name, the inspector reportedly asked how long she had been in New Zealand.
"Since I was a baby, I'm Kiwi," Dr MacAvoy said she responded.
"No you're not," she says the inspector replied, before adding, "Unless you were hatched here, you're not a New Zealander.
"If I go to China, that doesn't make me Chinese."
MacAvoy claimed the inspectorwas cordial towards her caucasian receptionist but his demeanour only changed when she entered the room.
MacAvoy said both she and her receptionist were appalled by the comments.
Auckland Council confirmed that it has received a complaint.
"We are currently investigating," said council spokeswoman Kate Palmer.
"Auckland Council takes allegations of this type of behaviour very seriously."
Dr MacAvoy has been approached for comment.