A snippet of the Finance Bill 2020.
The tax incentives are great, especially with the present economic situation.
I fear the tax relief to be given to companies that donated to covid-19 relief fund may be abused in a manner that hampers the country’s tax revenue.
Typically, a decision like this would be driven by data both past and present to determine the tax relief quotient.
What’s the tax revenue trend generated from the companies in the past 3 years? What’s the ratio of the relief to net profit? e.t.c.
The tax relief to be granted shouldn’t outweigh the dividend of the relief itself.