Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Govt calls for submissions on R&D

14 November 2000 Media Statement
Govt calls for submissions on R&D


"The proposal in the discussion paper the Government is releasing today would make all research expenditure and most development expenditure immediately eligible for tax deduction," Revenue Minister Michael Cullen says.

Specific issues the Government wants feedback on include:
 appropriate definitions for 'research' and 'development'
 the form legislation should take
 the application date for any change.

"It is unlikely that the legislative process will be completed until the second half of next year," Dr Cullen said. "That would mean that the change would not take effect until the 2002-2003 tax year.

"To bring it forward, the Government will consider making it effective from 1 April if there is public demand to do so.

"As the move is pro-taxpayer, and as the Government plans to introduce it as a voluntary option to ensure no-one will be disadvantaged, I would not expect
bringing the date forward to create any controversy," he said.

"The Government is determined to lift New Zealand into the first division of knowledge-based, sophisticated economies and therefore has a strong commitment to R&D.

"We demonstrated this in our first budget with the new $12 million R&D grants programme and the funding boost for Technology New Zealand.

"New Zealand also provides a limited tax concession through the immediate deductibility of scientific research spending. And we buy around $650 million a year in R&D directly from the Crown Research Institutes and the universities.

"We are now proposing to strengthen that support by bringing the tax laws into conformity with Generally Accepted Accounting Practice so that any R&D expenditure which is immediately written off for accounting purposes will also be immediately deductible for tax purposes.

"This will introduce more peace of mind into the system because the current uncertainty relating to the boundary between capital and revenue R&D expenditure carries for taxpayers the risk of potential disputes with, and penalties from, the Inland Revenue Department," Dr Cullen said.

Submissions close on 26 January.

They may be made in electronic form to policy.webmaster@ird.govt.nz or addressed in writing to:
Research and development proposal
C/- General Manager
Policy Advice Division
Inland Revenue Department
P.O.Box 2198
WELLINGTON.

The discussion paper is available on the website of the policy advice division of IRD at www.taxpolicy.ird.govt.nz and from the Treasury at www.treasury.govt.nz


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On NZ’s Complicity In Western Sahara

If David Parker really wants to hone his crisis-managing chops on an international trade dispute that New Zealand has been making worse for years, he maybe should be turning his attention to the Western Sahara.

Some background: two NZ companies called Ravensdown and Ballance Agri-Nutrients appear to be the only independent firms in the world still willing to import phosphate from the disputed territory of the Western Sahara... More>>

 
 

Gordon Campbell: On Malaysia Exposing Our Dodgy Policies On China

Last week, we all owed a vote of thanks to Malaysian PM Mahathir Mohamad for breaking with protocol during his bilateral with Jacinda Ardern. Reportedly, Mahathir used the photo opportunity phase of the meeting to launch into matters of genuine substance. More>>

ALSO:

Withdrawls After Police Uniform Ban: Auckland Pride Remains Committed

The Auckland Pride Board remains committed to creating a space for our rainbow communities to feel safe celebrating their gender and sexual identity, despite some institutions pulling out from the Parade in recent days. More>>

ALSO:

South Korea: State Visit By Korean President Moon Jae-In

The President of the Republic of Korea Moon Jae-in will visit New Zealand from 2 to 4 December... “I am very much looking forward to welcoming President Moon to New Zealand,” said Jacinda Ardern. More>>

Health: Changes To Drinking Water Standards

David Clark said many of the changes he is making, which will take effect on 1 March 2019, are clarifications or corrections, “but there are two changes which will significantly improve the ability to test and respond to the presence of harmful bacteria such as E.coli”. More>>

ALSO:

IPCA: Police Detention "Unlawful But Reasonable"

The Independent Police Conduct Authority has found that while Police acted unlawfully in October 2017 when they detained a Queenstown man for a mental health assessment, their actions were reasonable in the circumstances. More>>

ALSO:

Joint Statement: Chile President's NZ Visit

At the invitation of the Right Honourable Jacinda Ardern, Prime Minister of New Zealand, His Excellency the President of the Republic of Chile, Sebastián Piñera, undertook a State Visit to New Zealand on 19 November 2018... More>>

ALSO:

Climate Change: Top Academics Call On Government To Take Action

One hundred and fifty academics and researchers from around Aotearoa, including Dame Anne Salmond, Emeriti Professors and several Fellows of the Royal Society, have signed a strongly-worded open letter to the Government demanding bold and urgent action to tackle climate change. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels