The Canada Revenue Agency does NOT require the taxpayer to use the same depreciation method on the tax return that is used in preparing financial statements.

Question

Quizplus · Accepted Answer

The Canada Revenue Agency (CRA) allows taxpayers to use different depreciation methods for tax purposes (Capital Cost Allowance) than those used for their financial statements, as the tax rules and rates for depreciation are set by the CRA and may not align with the accounting policies chosen for financial reporting.

The Canada Revenue Agency Does NOT Require the Taxpayer to Use