The tax regime will definitely lead to stupid situations. For example, part of the bills paid by a CEO for taking two foreign partners out for lunch will be taxable. Now, who will decide what component was taxable and what was not? For that matter, who ate the fettuccini and who drank the white wine? Look at the case of a senior editor or a manager who travels frequently and stays in hotels and eats outside during the course of her natural duties. Who will decide and calculate which component of these travels, stay and eating expenses were for official work and which for ‘personal benefit’?
For complete IIPM article click here
Source:- IIPM Editorial, 2006
For complete IIPM article click here
Source:- IIPM Editorial, 2006
