Maximising tax-related cashflows for SMEs

SMU Associate Professor of Accounting Khoo Teng Aun compared the two options available to an SME not in a tax-paying position – cash payout (CP) or the Productivity and Innovation Credit (PIC) deduction/allowance – and concluded that whether the company should claim CP when it is incurring losses would depend on, among other considerations, its expected profitability in future years.