40 Introduction One of the purposes of regulating political financing is to limit the influence of large donors in the political system and encourage regular citizens to donate to political parties and electoral candidates. [...] Tax incentives for political donations Tax incentives can be defined as “a reduction in either the tax rate, the tax base, or the tax liability, which is granted if the selected beneficiary takes a specified action” (Sanchez-Ugarte, 1987). [...] The value of the in-kind donations is either the market value of the property on the day the donation was made or the amount that the individual paid for the property, whichever is less. [...] Canada Canada provides a tax credit on income tax for individual political donations.7 Unlike a tax deduction, a tax credit deducts the actual amount of tax paid by a taxpayer but not the marginal tax rate. [...] To facilitate tax credit calculation, the recipients of the political donations, including the approved agents, must keep records and books of accounts to verify transaction details such as the monetary contributions received by the agent and expenditures made by the agent.
- Pages
- 14
- Published in
- Malaysia
