THE BARBADOS ENTREPRENEURSHIP FOUNDATION (BEF) has suggested that some aspects of the Income Tax Act be revised in an effort to increase the availability of capital to entrepreneurs.
The BEF’s finance pillar, championed by Cidel Bank and Trust consultant Ben Arrindell, has recommended the amendment of Section 37D of the act which currently allows for a $10 000 tax exemption for investments up to $10 000 in venture capital and innovation funds.
“It was recommended that this deduction be increased to $1 million along with the introduction of a similar relief for direct investments by Angel Investors into projects of a similar nature,” the BEF said in its 2012 annual report.
It is believed that implementing this proposal would increase the flow of private capital to entrepreneurial projects by effectively lowering the cost of capital.
“If successful, this would reduce the amount of capital that Government would have to make available through funding agencies for entrepreneurs and the small business sector. . . ,” the report said.
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