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Business commission, legal or illegal

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Re: Business commission, legal or illegal

Post  RJM on Fri Jul 01, 2011 11:34 pm

Paul,
Quick questions before we go into details. Who should receive the commision; the public entity or public servant? or rather - Who should the business community give the comission? Who is doing business with the business community; public entity or public servant?
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RJM

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Business commission, legal or illegal

Post  Bilabaye Paul on Fri Jul 01, 2011 1:51 pm

In business community giving a commision is legalised and is part and parcel of business practice. This also is accepted by Income tax act as allowable deduction as long as it has been used for business promotion. But on the other hand receivers particulary public servant who are targeted by business community in the course of promoting their business are prohibited from receiving commission offered. When received it ends up being termed as corruption which is prohibited.To me this sounds as a professional dilemma, how do we get out of this dilemma?

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