Dreaded tax law on interest relaxed
Friday, August 16, 2019
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Hore
The proposed amendment, published through Income Tax Amendment Bill 2019, comes after rigorous lobbying by business for the amendment of the recently introduced thin capitalisation law which was enacted on December 31, 2018.
The effect of the December 2018 law was to effectively limit interest expenses incurred by corporates as from July 1, 2019 as tax deductions. Previously, every company could claim 100% of its interest expense but the law limited it to 30% of what is known as Tax EBITDA, effectively increasing corporate tax.
The BDP as a party known to have ample resources has always held its primaries well in time, but this time around that was not the case. The first leg of the primaries was held last weekend, with the final leg being billed for the coming weekend. This time around, the BDP failed to shine in its primary elections. The elections were chaotic; most if not all polling stations didn't open at the specified time of 6am. Loyal BDP members braved the...