May 9, 2005

FBT - Not directed at big businesses?

One of my friends has a theory.

The theory goes something like this.

Finance Minister P.Chidambaram's Fringe Benefit Tax (which kicked up a huge controversy) is not actually aimed at small, medium or even large businesses.

He actually has the tax gun trained on the huge number of free lance consultants and professionals who have so far been using tax loopholes to sometimes not pay any tax ! They have been doing that by claiming personal expenses as business expenses and showing overall losses !

Now, I wonder if that is true!