Capital Allowance and Business Deductions
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Questions and Answers

What is the primary condition for a person to be eligible for capital allowance?

  • The person has a minimum turnover
  • The person is a resident of the country
  • The person is carrying on a business (correct)
  • The person has a registered business name

    • What is the purpose of capital allowance?

  • To punish non-compliant businesses
  • To regulate business activities
  • To impose additional taxes on businesses
  • To provide concessions to businesses (correct)

    • What is the nature of capital allowance?

  • A concession given by the government (correct)
  • A penalty for non-compliance
  • A voluntary business decision
  • A mandatory taxation requirement

    • Who benefits from capital allowance?

    <p>A person carrying on a business</p> Signup and view all the answers

    What is the underlying principle of capital allowance?

    <p>To provide an advantage to businesses</p> Signup and view all the answers

    What is the relationship between capital allowance and business?

    <p>Capital allowance is a concession granted to businesses</p> Signup and view all the answers

    What is the main requirement for a person to be eligible for capital allowance?

    <p>The person must be carrying on a business</p> Signup and view all the answers

    What is the nature of the deductions provided by capital allowance?

    <p>Concessional deductions</p> Signup and view all the answers

    What is the significance of capital allowance in the context of taxation?

    <p>It is a way of reducing tax liability</p> Signup and view all the answers

    Why are capital allowances granted to businesses?

    <p>As a form of incentive</p> Signup and view all the answers

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