Ernst & Young adds to calls for extension of PIC scheme in Budget 2014
Another tax specialist has suggested that the Productivity and Innovation Credit (PIC) scheme should be extended and refined in the upcoming Budget.
In its wishlist for this year's Budget, Ernst & Young called for the scheme - set to expire when the Government's 2014 financial year ends in March 2015 - to be extended for a further five years.
"Efforts to encourage productivity and innovation will be short-lived if the PIC is phased out, especially when investments in productivity are just beginning to take off," said Ms Tan Bin Eng, Business Incentives Advisory partner at Ernst & Young.
The PIC, which has been enhanced each year since it was introduced in 2010, allows businesses to deduct from their taxable income 400 per cent of the first $400,000 spent on productivity-related investments.