- 1997 125

Uniform Final Exomination Report

TABLE III
A FORMULA FOR CALCULATING THE PRESENT VALUE OF
REDUCTIONS IN TAX PAYABLE DUE TO CAPITAL
COST ALLOWAI{CE

Investment
Cost
Marginal
Rate of
Income tax
Rate of
Capital Cost
Allowance
x(l +ry)

(
Rate of
Return + Alffilfftq x (1 + Rate of Return
)

MAXIMI.JM
CAPITAL COST ALLOWANCE RATES
FOR SELECTED CLASSES

Class1.... 47o
Class 3 57c
Class 8 207o
Class 9 257o
Class 10 3A7o
Class 10.1 3AVo
Class 12 1047o
Class 13 original lease period plus one renewal period
(Minimum 5 years and Maximum 40 years)
Class 14 Length of life of property
Class 17 87o
Class 36 up to 1007o
Class 39 257o
Class 43 30Vo