The result of Capital Cost Allowance (CCA)multiplying with marginal corporate tax rate is called
A) total tax cost.
B) the CCA tax shield.
C) corporate income tax.
D) none of the above.

Question

Quizplus · Accepted Answer

The result of CCA multiplying with marginal corporate tax rate is called the CCA tax shield. This is because CCA is a tax deduction that reduces taxable income and therefore reduces the amount of corporate income tax owed. The CCA tax shield is the amount of tax savings resulting from the CCA deduction.

The Result of Capital Cost Allowance (CCA)multiplying with Marginal Corporate