New Zealand

Details

  • Service: Tax
  • Type: Business and industry issue
  • Date: 23/06/2011

Tax

Our tax advisory team has the skills and commitment to help you to be competitive and compliant in all areas of business tax.

Taxmail - Government confirms deduction for unsuccessful software projects 

Issue 2, June 2011

 

The Minister of Revenue today announced that the Government will introduce legislation confirming that expenditure on failed software projects will be deductible for tax purposes. This is in response to a recent Inland Revenue interpretation statement reversing its long held position that such costs were deductible.

Legislation is expected to be introduced in September, and we expect the amendment to have effect from the 2011-12 income year.

 

This change means that our tax rules will not actively discourage software development.

 

KPMG will provide further clarity when the final form of the changes is known.

 

If you have any questions on the above, please speak to your usual KPMG advisor or contact:

 

Gwenan Riley

Partner - Tax
KPMG
Phone: +64 4 816 4755 gwenanriley@kpmg.co.nz

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 

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