Companies should get tax benefits for spending on good deeds, says legal eagle Justice Mark Fernando. Companies should get tax benefits for spending on good deeds, says legal eagle Justice Mark Fernando. The retired Supreme Court Judge suggests tax benefits for corporate social responsibility (CSR) activities because they reduce the welfare burden on the State.
Fernando points out that CSR activities sometimes “reduce the State’s financial burden in respect of social development.”
“It is therefore only just and equitable that in such instances fiscal policy recognise and financially reward the institutions,” said Fernando speaking at the 25th anniversary of the Chartered Institute of Accountants of Sri Lanka on Thursday.
Fernando suggests the use of instruments like tax concessions, differential rates, rebates, credits, permissible deductions to reward corporate good deeds.
These types of rewards – that show up positively on the balance sheet – are also expected to encourage good behaviour in other companies.
But as a starting point for CSR activity, Fernando suggests some corp