A major objective of capital cost allowance for tax amortization is to help companies achieve a faster write-off of their capital assets.

Question

Quizplus · Accepted Answer

The statement is true. Capital cost allowance (CCA) allows businesses to claim a tax deduction for the depreciation of their capital assets, which helps them to recover the cost of those assets over time. By allowing a faster write-off for tax purposes, CCA can help companies reduce their taxable income and therefore, their tax liability.

A Major Objective of Capital Cost Allowance for Tax Amortization