Comment by kazinator
3 years ago
Here in Canada we have similar fractional write-offs called CCA (capital cost allowance). That's for assets though, like a company building, car or equipment.
I've written an accounting system before for business activities and successfully used its reports to win a tax dispute.
I'm not so interested in the details of this, particularly because it's in another country, but I do understand the implications of suddenly not being able to entirely write off the likely most important and large business expense.
Ok so you understand but your original comment, before you changed it, talked about a tax on revenue, which isn’t accurate.
I also wrote my own accounting systems based on ledger-cli and regularly deal with amortization of assets.
The change is extremely bad and I’m not trying to say otherwise. Just wanted to clarify the exact calculation and difference between income statement and cash flow calculation.