Wednesday, November 23, 2005

Japanese Gov't to Reward Cybersecurity

The Daily Yomiuri reports today that a tax credit enacted in 2003 will expire at the end of the fiscal year, as originally planned. 10 percent of the purchase price of "IT devices" (from PCs to fax machines; not including software?) is deducted directly directly from corporate tax. In fiscal 2005, companies will save about 510 billion yen (almost five billion U.S. dollars). (I have lots of questions about the aims and success of this measure, especially regarding software, but that's not the point of this posting.)

In its place, the government is considering enacting a package to improve the international competitiveness of companies. One provision may be a similar deduction of "10 percent of the retail price of database management software and other devices aimed at preventing illegal computer access, the use of spyware and information leak among other incidents."

That's a noble but vague goal; I could argue that practically anything was bought to further my cybersecurity. Moreover, security is more about practices than purchases.

I also wonder if companies that create cybersecurity problems a la Sony will have their taxes raised?


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