12. What does this mean for businesses?

12. What does this mean for businesses?

Answer

Any business that is not declaring a minimum return on its assets will need to pay more tax. This forces a greater efficiency of capital (productivity) and disincentivises low-earning businesses. Those businesses facing a temporary or cyclical earnings downturn could defer their minimum income tax for a period of up to 3 years (use of money interest to be charged).