Hii,
I have a small clarification on capital allowance and Tax allowable depreciation. are both of them same.
?if a question states that capital allowances are available at 20% reducing balance method, so what should we do. Should we calculate the tax savings on depreciation and add to the cash flows or should we deduct depreciation, calculate the tax after that add back the depreciation again
?
?Appreciate your valuable reply?
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capital allowance and Tax allowable depreciation
Both treatments are acceptable.
But if question gives u hint about losses then use the second treatment which is less dep and add back.
11y ago#2muneebnawaz is correct.
And yes - capital allowance and tax allowable depreciation mean the same thing)
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