Typically Exempt from the Sales/use Tax Base Is the Purchase

question 73

True/False

Typically exempt from the sales/use tax base is the purchase of tools by a manufacturer to make the widgets that it sells.

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Definitions:

Computer System

An integrated set of hardware and software designed to process, manage, and store data.

Capital Cost Allowance (CCA)

A tax deduction in Canada that represents a business’s investment in depreciable property.

Earnings Before Interest And Taxes

A measure of a firm's profitability that includes all income and expense items except interest and income tax expenses.

Installation Cost

The expense associated with setting up or putting equipment, infrastructure, or software into operation.