Extend listing tax incentive by one year
Atarah Capital Partners Managing Director Rohan Senewiratne noted that instead of having a ‘mad rush’ to list companies before the December 31 deadline there was scope for pragmatism for the deadline to be extended another year or be made available to companies that had lodged a listing application by December 31.
Senewiratne opined that the CSE and SEC were under considerable pressure to meet the December deadline. He opined that the impact of not extending the deadline would see 7-8 companies that would otherwise have listed remaining as private entities. On the tax leakage front, Senewiratne suggested that public listed companies were more likely to report accurate profits due to minority shareholder pressures and as a result, Inland Revenue would actually end up making more tax revenue by promoting the scheme.