tag:blogger.com,1999:blog-7923005810906159036.post7227718858934258659..comments2024-03-27T12:49:05.975+00:00Comments on IP finance: SA reducing incentives for intellectual property outflowsAnne Fairpohttp://www.blogger.com/profile/02579190868405783459noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7923005810906159036.post-56432934335497133332008-07-16T18:24:00.000+01:002008-07-16T18:24:00.000+01:00Classic case of how protectionism backfires. They...Classic case of how protectionism backfires. They're restricting transfers nominally to encourage IP development in South Africa. But by doing so they're going to shift IP development overseas. What's better for promoting IP: giving tax breaks to the person who develops it and transfers it overseas or making that person pay taxes? What makes the government think that it will make more money if inventions are only practiced in South Africa?<BR/><BR/>GSK cannot be pleased with this development. If I'm them, I'm thinking seriously about moving headquarters to a more tax-friendly jurisdiction.<BR/><BR/>This happened on a smaller scale in Silicon Valley when the Santa Clara County tax assessor effectively forced Intel into moving its headquarters to the Central Valley.Michael F. Martinhttps://www.blogger.com/profile/15279501532684851571noreply@blogger.com