It is interesting to read that SI Chamber of Commerce and Industry (SICCI) have written to PM to reconsider its position on the policy of Taxing school fees. Such request should be directed to Inland Revenue as it is the body responsible for administering the various tax legislation and who also makes amendments to close loopholes in these legislations which are regarded as leakage to Government revenue.
I understand under the Income Tax Act, any expense incurred by an employer on training its employees is deductible against Income earned. To claim taxing the payment of school fees acts as a disincentive for wokers to educate their children lacks evidence as the personal exemption threshold had been increased lately.
My suspicion is some private companies are paying school fees for children of senior local and expart employees and such transaction is included as non-cash benefit under their contracts and have never in the past paid their fair share on such taxable benefit or Income. Now that Inland Revenue is closing in on them with aid of RAMSI advisors to collect this oustanding taxes I suspect they are the ones using the Chamber as their mouthpiece to ask Mr PM to review such policy and claiming any change in their favour will benefit majority of honest SI school fee paying parents who've paid their fair share of tax. Remember, Government needs money to pay for salary of policemen and women who ensure SICCI members have the conducive environment to make business and earn desired profit.
Chamber urges Government to Reverse Policy on Taxing School Fees.
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