The Y2K Task Force Report recommends that consideration be given to year 2000 expenditure being fully tax deductible. Currently the ruling is for these costs be treated as a capital expenditure and therefore depreciated over time.
The government has decided to disregard the Task Force recommendation on this matter. The decision to not allow full tax deductibility is based on its claims that the year 2000 problem has been a design choice. Although I'm sure this may be true in a few cases, none of the year 2000 problems I have encountered has been deliberate and I'm certain this is true of the majority of problems that exist.
It is nonsense to claim, for instance, that an embedded systems programmer would knowingly program medical equipment with serious and potentially fatal logic.
Unfortunately, the view IRD has taken has set a precedent among software developers and vendors. Many are now insisting that these year 2000 problems are not bugs at all and are, in fact, design enhancements.
Therefore, the customer should be liable for any costs incurred in fixing the problems and such costs will not be covered by any existing maintenance contracts