Allocation of common costs: tonnage tax companies must apportion shared expenses and depreciation fairly between activities. Tonnage tax companies carrying on other businesses must determine common costs attributable to the tonnage tax business on a reasonable basis. ... Summary
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Allocation of common costs: tonnage tax companies must apportion shared expenses and depreciation fairly between activities.
Tonnage tax companies carrying on other businesses must determine common costs attributable to the tonnage tax business on a reasonable basis. Depreciation for any non-qualifying asset used for both tonnage tax and other business must be allocated between activities in a fair proportion determined by the Assessing Officer, having regard to the asset's use for each activity.
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