Author Retains CopyrightWellington, Stephen Terence2011-04-112022-10-262011-04-112022-10-2619921992https://ir.wgtn.ac.nz/handle/123456789/23816The current tax treatment of computer software expenditures in New Zealand is inconsistent with existing tax principles and the matching concept. Current practice is to treat all computer software expenditures as revenue items. Analysis of case law and overseas accounting and tax practices however, shows that computer software expenditures have the characteristics of capital. In bringing New Zealand's treatment of computer software expenditures more in line with existing tax law and the matching concept, tax legislation needs to facilitate the nature of computer software. The current depreciation regime must become more expansive to cater for intangible items. Research and development expenditure provisions need to provide more explicit guidance in demarcating capital from revenue. In addition, computer software products need to be separately identified. In this way, adherence to the matching concept and consistency in the treatment of computer software expenditures can be promoted.pdfen-NZhttps://www.wgtn.ac.nz/library/about-us/policies-and-strategies/copyright-for-the-researcharchiveComputer softwareEconomicsTextAll rights, except those explicitly waived, are held by the Author