Capital Allowance is an incentive granted to all persons in business and investment. They are, however, granted upon fulfillment of certain conditions.
Required:
Explain fully the conditions under which GRA may grant Capital Allowance to a person. (4 marks)
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i. Capital allowances are granted with respect to depreciable assets of a capital nature
ii. Capital allowances are only granted in respect of depreciable assets owned by the person making the claims
iii. The assets should be used in the generation or production of the income of the person
iv. The Commissioner General should be informed of the purchase and putting the asset into use within one month
v. It must be in the business in the last basis period of the business except in temporary disuse
vi. It must be acquired at a cost. (4 marks for any 4 points mentioned)