Here we will discuss the aspects of the CT (corporate tax) consultation document, released by the MOF that discusses, non-deductible expenses, offsetting losses, and the interest capping rules. The objective of these restrictions in reducing the tax liability is to make sure that no taxable person takes undue advantage of the CT regime or makes excessive deductions.

If non-deductible expenses are wrongly deducted in the taxable income calculation, the tax liability will reduce and we can be fairly confident that there will penalties for the same.