IT-283R2 "Capital Cost Allowance - Video Tapes, Videotapes Cassettes, Films, Computer Software and Master Recording Media"

A contractual right or licence of a capital nature to buy and to resell, to sublet or to otherwise market computer software is not a right or licence to use computer software and, therefore, qualifies as a Class 14 asset (if for a limited period) rather than as a Class 10 or Class 12 asset.

Ordinarily, a taxpayer in the business of producing and marketing software for sale should include in inventory those development and software production costs that relate to the work in progress on hand.

Software is considered to be a capital asset where its useful life is anticipated to last beyond one year.