Parliament

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

Veronika Meduna: The Kaikoura Rebuild

A Scoop Foundation Investigation

Friday will be a big day for people north of Kaikōura – and for hundreds of construction workers who are racing to reopen State Highway 1 in time for the holiday season.

By the afternoon, the South Island’s main transport corridor will be open to traffic again, more than a year after a magnitude 7.8 earthquake mangled bridges and tunnels, twisted rail tracks and buried sections of the road under massive landslides. More>>

 

BPS HYEFU WYSIWYG: Labour's Budget Plans, Families Package

“Today we are announcing the full details of the Government’s Families Package. This is paid for by rejecting National’s tax cuts and instead targeting spending at those who need it most. It will lift 88,000 children out of poverty by 2021." More>>

ALSO:

Gordon Campbell: On Defence Spending, Alabama, And Dolly Parton

The spending lavished on Defence projects to meet the risks that could maybe, possibly, theoretically face New Zealand in future is breath-taking, given how successive governments have been reluctant to spend even a fraction of those amounts on the nation’s actual social needs. More>>

ALSO:

Members' Bills: End Of Life Choice Bill Passes First Reading

The End of Life Choice Bill in the name of David Seymour has been sent to a select committee for consideration by 76 votes to 44. It is the third time Parliament has voted on the issue in recent decades and the first time such a Bill has made it over the first hurdle. More>>

ALSO:

State Sector: MPI Survives Defrag Of Portfolios

The Ministry for Primary Industries will not be split under the new government, but will instead serve as an overarching body for four portfolio-based entities focused on fisheries, forestry, biosecurity and food safety. More>>

ALSO:

Gordon Campbell: On Vulnerable Kids, RNZ Funding, And Poppy

The decision to remove the word ‘vulnerable’ from the Ministry for Vulnerable Children could well mark a whole shift in approach to the care of children in need... More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages