The Income Tax Act generally requires that companies use a double-declining-balance method of cost allocation called Capital Cost Allowance to determine the maximum amount of deduction for a taxation year.

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This statement is true. The Income Tax Act in Canada does require companies to use the double-declining-balance method of cost allocation called Capital Cost Allowance to determine the maximum amount of deduction for a taxation year.

The Income Tax Act Generally Requires That Companies Use a Double-Declining-Balance