Capital Cost Allowance (CCA)tax shield is the tax ________ that result(s)from the ability to deduct CCA from taxable income.

Question

Quizplus · Accepted Answer

CCA tax shield results in a tax savings because it allows businesses to deduct the costs of their capital assets from their taxable income, which reduces their overall tax liability. This creates a tax shield which translates to savings for the business.

Capital Cost Allowance (CCA)tax Shield Is the Tax ________ That