Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

IRD Commissioner Takes Interest In R&D Law

The Commissioner of Inland Revenue will be taking a personal interest in how his department applies the new Research and Development law once it is enacted.

"The new Inland Revenue Charter, launched earlier this month, emphasises the importance I place on the department applying the law as it is enacted,” said Commissioner David Butler.

“Under the new bill what is properly expensed under accounting rules will be deductible under tax rules.

"Consultation with the private sector during the development of the R&D proposals indicated that some people are concerned that Inland Revenue might take a restrictive interpretation of the new law. In particular, they wonder if what is clearly R&D expenditure at the time it is incurred might later be challenged by Inland Revenue on the basis that the research has been a success and has led to commercial production.

"That concern is unfounded. What will happen in practice is that Inland Revenue auditors will take into account the information available to the decision-maker at the time, and will challenge the original decision to expense only when it is clearly not sustainable.

"To reassure the business community I am going to take an active role in liaising with business on the application of the new R&D legislation. Should there be problems with its application, I'm available to the private sector to discuss and correct them.

"Once the legislation is enacted, Inland Revenue will provide information to the community on the new provisions. We will publish a detailed Tax Information Bulletin on the new legislation, and I will be consulting with tax professionals and other interested parties on other kinds of information they would find useful," Mr Butler said.


ENDS




© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank Holds Rate: Dollar Jumps As Potential Hike Wrong-Foots Traders

The New Zealand dollar jumped just over one US cent after the Reserve Bank's bias towards eventually hiking interest rates - rather than cutting them - wrong-footed traders who were more wary about global risks. More>>

ALSO:

Dolphins, Albatross, And... Four Endangered Sea Lions Dead In Nets In One Week

Forest and Bird: Four endangered NZ sea lions have been killed in commercial fishing nets in one week, making this the third day in a row endangered animals have been confirmed dead at the hands of the commercial fishing industry. More>>

ALSO:

Solar: Falling Battery Costs May Outstrip Transpower Projections

Falling solar and battery costs may already have overtaken prices assumed in Transpower’s latest modelling of the future power system, the Sustainable Energy Association of New Zealand says. More>>

ALSO:

Dire Deals: SAFE Salutes Short Shrift For Saudi Sheep

SAFE applauds the Government’s decision to cancel the controversial Saudi sheep deal, a plan by the previous Government which was to include a $10 million slaughterhouse in the Saudi desert. More>>

ALSO:

Nelson Fires: Extended Emergency

A combination of benign weather and outstanding fire management has seen the risk posed by the Pigeon Valley fire significantly reduced for some areas. More>>

ALSO: