Capital cost allowance (CCA)deductions shield revenues from taxation and thereby lower the amount of taxes that a company must pay.

Question

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Capital cost allowance (CCA) deductions allow businesses to deduct the cost of assets (such as equipment and buildings) from their taxable income, which reduces the amount of tax they are required to pay on their revenue. This effectively shields a portion of their revenues from taxation.

Capital Cost Allowance (CCA)deductions Shield Revenues from Taxation and Thereby