Straight line depreciation must be recalculated to reflect prevailing tax depreciation rates and shift allowances, including triple shift. Any straight line depreciation provided under the Companies Law must reflect changes made in the Income tax Act or Rules, including extra and multiple shift allowances; accordingly, companies using the straight line method should recalculate the specified period for affected assets and adjust depreciation provisions to incorporate such changes, since the specified period is derived from the reducing balance rate that includes those allowances.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Straight line depreciation must be recalculated to reflect prevailing tax depreciation rates and shift allowances, including triple shift.
Any straight line depreciation provided under the Companies Law must reflect changes made in the Income tax Act or Rules, including extra and multiple shift allowances; accordingly, companies using the straight line method should recalculate the specified period for affected assets and adjust depreciation provisions to incorporate such changes, since the specified period is derived from the reducing balance rate that includes those allowances.
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