Rienzo sent this email to the TipsforTrevor email address. I have blogged about tax breaks for good contributors before - the idea was put to me by Dave Meintjies. I think it is brilliant idea. If you like it as well please send him a similar email.
Dear Mr Manuel,
Our business is built to assist South African businesses in understanding BROAD BASED BEE, and in building strategies that are relevant to them and that not only keep them in business, but make them more competitive and better employers.
One of our biggest criticisms of the BEE Act, the dti's Codes of Good Practice and the interpretation thereof, is that invariably there is a "penalty" approach for non compliance. It becomes a grudge purchase or unwelcome "additional company tax".
We understand that projects such as ASGISA and JIPSA are crucial in reducing the second economy and reducing the financial burden that transformation is having on the State coffers. Indeed, we firmly believe that the Enterprise Development, Skills Development, and Socio-Economic Development elements of the Scorecard are the keys to putting more of the economy into disadvantaged hands. These are the cornerstones of broad-based economic empowerment
With the above in mind, we would like to suggest that you explore "tax-break" benefits for companies that can conclusively prove that they are investing in these three elements specifically. Our opinion is that if companies were offered a "carrot" rather than a "stick", we may see more defined efforts in these arenas and less of a focus on finding a well connected business person, to hand more wealth.
We cannot see anything but benefit to the majority of South Africans trapped in the second economy, or to the Government in relief from the responsibility of caring for these people alone.
We would value the opportunity of discussing this with you more.
Good luck with the 2007 budget.
Yours,
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Rienzo Colpo
The Caird Group
"creating BUSINESS sense out of BEE"