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

 


Tax on patent sales to be made easier

Hon Dr Michael Cullen
Minister of Revenue

2 August 2005 Media Statement

Tax on patent sales to be made easier

The government will introduce a tax change to ease a cash-flow problem for technology firms when they sell patents, Revenue Minister Michael Cullen announced today.

“Firms will be allowed to spread the tax liability on patent sales over three years, rather than paying it all in the year of sale,” Dr Cullen said.

“The change will remove a tax impediment to investing in new technology and alleviate a problem identified by task forces set up under the government’s Growth and Innovation Framework.

“Technology firms often sell their research, in the form of patents, in return for shares or share options rather than cash. When that happens they may not have the cash to pay tax on the proceeds of the sale.

“Allowing firms to spread the tax over three years will ease their cash-flow problem and help them to forecast their provisional tax accurately, thus avoiding use-of-money interest charges. It will be of particular help to new technology firms.

“The change will be included in the first taxation bill to be introduced next year and, once enacted, is expected to apply from 1 April 2007,” Dr Cullen said.

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>

ALSO:

Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>

ALSO:

Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>

ALSO:

Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>

ALSO:

With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>

ALSO:

Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news