Quote:
Originally Posted by Tinordi
Canadian Development Expense
Canadian Exploration Expense
Are the two big ones.
Existing ACCA is still a subsidy until it's phase out by 2015
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How is CDE a subsidy?
CDE assets are allowed to be expensed at 30% per year on a declining balance for tax purposes, as oppose to fully in the year incurred. So they actually spread out the tax write off over a number of years instead, thereby increasing the present value of taxes collected.
Or are you suggesting that its a subsidy because CDE assets could be expensed over a much longer period of time, thereby decreasing their tax savings?