Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.



2437 posts

Uber Geek
+1 received by user: 218

Trusted
Subscriber

Topic # 73396 13-Dec-2010 17:23 Send private message

I ask in light of the recent decision by the IRD that storing your primary business records on cloud services outside New Zealand is an offence under the tax administration act:

http://www.ird.govt.nz/technical-tax/revenue-alerts/revenue-alert-ra1002.html

Alternatively, does Xero have a plan to address this? I've been considering moving away from MYOB which costs a fortune and obviously if there's question about the legality, that'd be a dealbreaker for me.

Create new topic
6821 posts

Uber Geek
+1 received by user: 313


  Reply # 416641 13-Dec-2010 17:36 Send private message

Kyanar: I ask in light of the recent decision by the IRD that storing your primary business records on cloud services outside New Zealand is an offence under the tax administration act:

http://www.ird.govt.nz/technical-tax/revenue-alerts/revenue-alert-ra1002.html

Alternatively, does Xero have a plan to address this? I've been considering moving away from MYOB which costs a fortune and obviously if there's question about the legality, that'd be a dealbreaker for me.


I would assume they would be stored in NZ, as that would make sense.

I can't see why they would store them offshore, and I wouldn't think they would need all that much storage either, seeing it is just accounts.

BDFL
49108 posts

Uber Geek
+1 received by user: 4131

Administrator
Trusted
Geekzone
Subscriber

  Reply # 416644 13-Dec-2010 17:41 Send private message

Xero uses Rackspace, so I'd assume it's not stored in New Zealand. Then they have just posted a blog entry about this.

"New Zealand legislation hasn’t kept up with developments in technology compared to other countries. We are working towards certification of our current customers and in the longer term expect to see the legislation amended to better reflect contemporary technology. We’d expect this to end up in a similar position to Australia where there is no onshore storage requirement, only that your records are available if requested. There are a number of fall back positions if the industry doesn’t get there.

As a leader in the industry we’ve been proactively working on this issue for some time for the benefit of other software developers.

We have a great relationship with the IRD and working with them on a range of initiatives as they understand the benefits of cloud technology to reduce compliance costs and improve small business productivity."

Notice how they don't actually answer the question "where is the data stored?"





364 posts

Ultimate Geek
+1 received by user: 8

Trusted
Subscriber

  Reply # 416646 13-Dec-2010 17:44 Send private message

Xero servers (and data) are hosted by RackSpace - a U.S. based company.

This note from IRD is madness since many firms already have their data held with head offices, etc offshore. A guess they just have to give advice based on the current laws so not their fault. But a level of madness all the same.






2437 posts

Uber Geek
+1 received by user: 218

Trusted
Subscriber

  Reply # 416647 13-Dec-2010 17:46 Send private message

They're saying they've got some blanket dispensation from the IRD for their customers - frankly, I'd like to see some assurance from the IRD of that, because I feel that if there were dispensations, the IRD would have mentioned them in the posting. But they didn't, so I'd be inclined to believe there aren't.

paulspain: Xero servers (and data) are hosted by RackSpace - a U.S. based company. 

This note from IRD is madness since many firms already have their data held with head offices, etc offshore. A guess they just have to give advice based on the current laws so not their fault. But a level of madness all the same.
 

I'd suspect that in the case of head offices, etc, the branch office in NZ has the primary business records - which are what the IRD are interested in.  For non-NZ companies which aren't registered here, it doesn't matter anyway. 

364 posts

Ultimate Geek
+1 received by user: 8

Trusted
Subscriber

  Reply # 416648 13-Dec-2010 17:46 Send private message

Oops - looks like I posted at the same time as freitasm. I agree that this NZ law is outdated.




Create new topic




Twitter »
Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:




News »

Trending now »
Hot discussions in our forums right now:

MH 17 "shot down" all dead
Created by joker97, last reply by turnin on 22-Jul-2014 16:56 (196 replies)
Pages... 12 13 14


PB Computers experiences
Created by KiwiNZ, last reply by paulmilbank on 23-Jul-2014 11:32 (20 replies)
Pages... 2


Huge Fuss, didn't even make it a year.
Created by networkn, last reply by Glassboy on 22-Jul-2014 19:50 (121 replies)
Pages... 7 8 9


Skinny's new aggressive ad campaign
Created by Yabanize, last reply by Yabanize on 22-Jul-2014 23:35 (52 replies)
Pages... 2 3 4


Insulation - good deals?
Created by Fred99, last reply by Handle9 on 19-Jul-2014 18:08 (15 replies)

Telecom and temporarily moving
Created by Tel69, last reply by NonprayingMantis on 19-Jul-2014 21:34 (12 replies)

Cunliffe on Holiday
Created by networkn, last reply by trig42 on 23-Jul-2014 09:02 (34 replies)
Pages... 2 3


Those were the days......Xtra Jetstream plans 10 yrs ago
Created by clinty, last reply by tdgeek on 23-Jul-2014 11:43 (31 replies)
Pages... 2 3



Geekzone Live »
Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.

Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.