Our Intellectual Property lawyers published an update in Managing IP drawing the attention of IP owners to the possibility of capital gains tax being assessed against the sale of intellectual property in Fiji.
The Fiji Tax Tribunal made a ruling on 25 February 2015 in A New Zealand IP holder v Fiji Revenue and Customs Authority (action 6 of 2014) and imposed CGT at a rate of 10% on the sale of registered trade marks held by a New Zealand company.
Our IP lawyers analyse the reasoning of this decision and note:
This ruling is a red flag to IP owners in Fiji in terms of tax structure and how they structure commercial arrangements under licence agreements.
Our IP lawyers also note:
In terms of IP and tax law, the ruling is very important. It may open the doors to discussion with authorities as to how an IP owners is to value the cost or acquisition of its intellectual property, and what sort of evidence will be acceptable to the Fiji Revenue and Customs Authority.
To read the full article in Managing IP please click here