ECHOES OF TAX & LAW – CLAIM OF CAPITAL ALLOWANCES IN COMPANIES INCOME TAX: THE CONDITIONS AND THE PLACE OF CAFA
Capital allowance is a provision in the Companies Income Tax Act (CITA) which allows companies to deduct their expenditure incurred on capital items before arriving at their taxable profit. Such capital items include: buildings, plants, office equipment, furniture and fittings, and motor vehicles. Capital allowances are granted on costs incurred for the procurement of qualifying…