Calls Raised for R&D Credits
February 22, 2013 New Zealand Taxation
Removing tax credits from research and development activity was an inefficient move for New Zealand.
According to a statement released by the Auckland based Andersen Accountants on February 21st, a new report from the Organization for Economic Cooperation and Development has highlighted New Zealand’s current tax treatment of research and development activities conducted by local firms.
According to Anderson Accounting, tax credits for research and development activity incentive desirable economic activity, and removing the measures is similar to firing the highest performing sales people.
If reinstated, tax credits for research and development could be reworked and made more efficient than in the past by tightening the rules concerning the characterization of expenses and also by limiting the credits only to spending on new activities.
Photo by Sanofi Pasteur