Because your IP represents a collection of assets, tax implications can arise. IP assets can trigger numerous tax-related issues such as:

• income tax;
• capital gains tax;
• tax deductions;
• depreciation;
• trade mark taxation;
• special tax write-offs;
• withholding taxes-both local and international;
• GST; and
• stamp duty.

Many of the tax implications will not apply to your business, but it is important to talk to your accountant if you intend to sell or license your IP. It is also very important to get this advice early, as it can vary depending on who owns the IP. For more information, see the Australian Taxation Office website at www.ato.gov.au

Of particular relevance is Australia's adoption of the International Financial Reporting Standards (IFRS). These standards have particular implications for reporting intangible assets, including intellectual property. For a full explanation of the implications of IFRS on reporting intangible assets, consult your accountant or visit www.cpaaustralia.com.au

Ultimately your commitment to your IP assets depends on how important they are to your business success. But don't forget, in planning for your business' growth, what might seem unimportant today might be worth millions of dollars to you in the future. That's why you should be IP smart from the very start.