By Glenda Anderson, Staff Reporter 
SCROOGE WILL be in for a huge shock as, despite the cash crunch, many Corporate Area businesses are continuing their year-long good cheer, donating millions of dollars in cash and kind to local charities and individuals.
And it's not for the five per cent tax break, they say. In fact many businesses say the promise of a tax cut is no longer an attractive enough incentive.
"The cut is nothing compared to the returns you get from the publicity. The public relations value alone is worth far more. In fact I don't even know if people are really interested in the tax cut anymore," said Dennis Hickey, City of Kingston Co-op Credit Union's marketing manager. The goodwill that we have built up through charitable activities alone is fantastic. Out of our outreach alone we have had persons patronise, send friends and relatives over to do business. It has really worked well in our favour."
Dr. Keith Amiel, corporate Affairs manager at Caribbean Broilers Ltd., agreed, noting that while it was definitely not the reason for giving, goodwill has always been a pleasant return.
"If they know that you live among them, work alongside them and play alongside them they would tend to return the compliment when they go to shop," he said. "The tax break really does not apply. The questions are usually: does this person need it, can they get it any other way, or how can we help?"
Locally, companies may write off as 'deductible expenses', any donations made to recognised charitable organisations. The charities may also apply to the Finance Ministry to have tax on certain items waived.
INSTITUTIONS
"Donations made to approved institutions established and operated exclusively for charitable or educational purposes are allowable expenses under Section 13 (1) (q) of the Income Tax Act," the Tax Administration Services Department (TASD) reports.
"The total allowable donations to these organisations may not exceed one-twentieth (1/20) or five per cent of statutory income in the year of assessment."
But according to some business people, this is a paltry sum which is not really worth the exertion.
"It's the 'feel good' factor," Mr. Hickey explained. "That warm feeling to have helped someone."
Judith Cousley, public relations manager at Capital Credit
