Govt reviewing tax credit scheme

Business

By MARK HAIHUIE
TAX credit schemes are under review to make sure the Government is getting “its money’s worth” from projects undertaken by companies, says Deputy Prime Minister Charles Abel.
He told The National that the review was prompted by a lack of reporting on projects under the scheme from government authorities and companies.
“The government has a lot of money being claimed after tax credit and we may not be seeing the full outcomes. I think the onus is on us to be more stringent on the reporting side of it so that we get our money’s worth from this,” Abel said.
“The other issue is that we are moving a little bit away from the intention of the tax credit scheme to funding projects in the desire by the government that is not necessarily in the project areas or rural areas.
“So we just need to get back to what it is meant to be for and to tighten up the reporting side of it.
“We are reviewing the scheme to make it better.
“It is not something that we are getting rid of completely as it a very useful means to getting things done.”
He said companies had to apply to the Department of National Planning and Monitoring to qualify as a tax credit scheme participant and apply again for certain projects.
“That process is done in consultation with the provincial government. When the provincial government agrees, then it comes Planning for approval. Then the companies can go ahead and make that expenditure. And while filing their tax returns they claim that deduction back.
“The department also has to go down and make sure these projects are being implemented against what they are committed to.
“We just have to tighten up that process in terms of holding the companies accountable to what they say it is going to be spent for.”