Tax incentives have become an increasingly important policy tool in recent years, with generous tax incentives being offered to stimulate business investment, innovation and entrepreneurship.

A recent report by the National Audit Office (NAO) raised concerns about the use of certain UK tax reliefs. The NAO asserted that certain tax reliefs such as tax credits for companies’ research and development costs are not being properly monitored by HMRC and are open to abuse.

Requirement

Discuss the respective merits and demerits of using corporate tax incentives as a means of promoting business growth, investment and entrepreneurship.

Answer rating: 100% (QA)

A tax incentive is an aspect of a countrys tax code designed to incentivize or encourage a particula... View the full answer