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What is the difference between book depreciation and tax depreciation?

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Question added by Farah Husni , Supply Chain Manager , Supply Chain Corp
Date Posted: 2014/05/07
Altaf Hussain Syed
by Altaf Hussain Syed , Accountant , National Taxi LLC

book dep: actual dep as per books of accounts and 

tax dep: to save the tax liability we show depreciation more.

 

the difference can be obtained by using different methods of depreciation for different assets.

Meh Engelbert Kum
by Meh Engelbert Kum , Revenue Assurance Manager , Vodacom Business Africa, Cameroon

The Tax Man calls it Capital allowance while the Accountant Calls it Depreciation.

 

Depreciation is Notional while Capital Allowance is State driven

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