Agriculture joins chorus against proposed changes to assessed loss regime
Industry and tax professionals advise MPs that the sector should be able to carry over 100% of its assessed tax losses
The agricultural sector joined with other bodies on Tuesday to plead for its exemption from the Treasury’s proposal to limit the use of assessed losses carried forward to 80% of taxable income from the current 100%.
Currently, companies that made a previous loss that is assessed as such by Sars can carry it forward to the next tax year and offset 100% of the loss against their tax obligation so that no tax is paid. In terms of the Treasury’s proposal only 80% of the loss can be used to offset the tax obligation...