Budget provides tax relief to certain ‘black hole’ expenditure
Long overdue but still welcome
It is refreshing to see the Government move to deal with a number of categories of much-maligned “black hole expenditure,” says Deloitte CEO Thomas Pippos.
The term is used to describe a business expense for which no tax deduction is available, and has been a sore point for many businesses over time in various fact situations. The measures announced today propose to remove black hole expenditure in certain instances including:
“The amount at stake is often immaterial in any global sense with the irritant and equity factor far exceeding the dollar amounts involved,” says Mr Pippos.
“Possibly the most positive outcome is that it evidences that officials have constructively listened to the concerns of the private sector and removed a number of irritants and anomalies in the current rules which reinforces the importance of constructive dialog in the development of tax policy,” concludes Mr Pippos.