Jedi Accountant
OUT OF CHARACTER INFORMATION
HISTORICAL INFORMATION
The desire to have a book on the Talz's infamous capital cost allowance system began when VPN began to gain traction in the Talz tax accounting market, especially with non-Talz residing in Talz territory for business (regardless of whether it is incorporated or not). It took a while to sift through the available documentation on CCA and nearly all of it was written in Talz script. Nevertheless, it was translated in six weeks and still managed to fit within about thirty pages, with examples taken from actual clients but with names being changed or redacted, which was a requirement under Talz copyright law for that sort of items. Nevertheless, it can give nightmares to readers unfamiliar with depreciation and amortization in accounting.
- Intent: To expand on the Talz's fiscal lore
- Image Credit: N/A (no image debit)
- Links: Capital Cost Allowance, Tax Return of the Jedi
- Media Name: CCA: Tax Tales from the Talz
- Format: Book, Holobook
- Distribution: Inter-Planetary
- Length: Short
- Description: CCA: Tax Tales from the Talz is meant to be a comprehensive guide to the Talz's fiscal practices surrounding depreciation and amortization
- Author: Original Talz author unknown, Griet van Vliet (Basic translator)
- Publisher: VPN Accounting LLP
- Reception: Because it provides in-depth coverage of a specific taxation topic, it is understandable that there were only a handful of people that actually had any attention whatsoever to its content, even within the accounting community. Otherwise it can give nightmares to non-Talz or non-accountants if misused
- Chapter 1: Overview: Capital Cost Allowance (thereafter referred to as CCA) is essentially a declining balance depreciation system applied to entire classes of depreciable assets, using the half-year convention (whereby purchases are deemed to take place half-way through the fiscal year where it begins revenue use, regardless of any actual date at which the asset begins revenue use), rather than to individual assets as would be the case under most GAAP systems used for financial reporting (including, but not limited to, IFRS). In effect, CCA is a discretionary tax deduction, with the UCC (undepreciated capital cost) being the remaining amount on which CCA may be taken in future years.
- Chapter 2: CCA classes: There are 53 CCA classes, with several classes with their own subclasses. Of note is the infamous class 8, referred to as the "catch-all" among Talz accountants thanks to the class including all assets not included anywhere else. This chapter provides an exhaustive listing of what's included in each class, as well as the rate of decline and any other limitation on the class (e.g. class 10.1 being for each individual luxury speeder, while not being subject to recapture or terminal loss, class 13 being a straight-line class, class 14 not being subject to the half-year convention)
- Chapter 3: Recapture and terminal losses. Recapture occurs when a negative UCC balance exists in a CCA class at year-end, which is fully taxable revenue, while a terminal loss occurs when there is a positive UCC balance in a CCA class after disposing of all assets in that class, which is a fully deductible loss. It may be carried back for up to three years or carried forward for up to 20 years, should there be no revenue left in the year the terminal loss was incurred after the terminal loss is accounted for.
- Chapter 4: Special rules: In some situations, such as the year of establishment, the year of change in control or the year of liquidation, the allowed amounts of CCA that may be taken are pro-rated for the duration of the deemed tax year and the normal tax year. Also CCA may be taken on rental property only up to the EBITDA (earnings before income taxes, depreciation and amortization) if EBITDA from rental property is less than the CCA limit on that property and EBITDA is positive, except if a terminal loss is incurred.
HISTORICAL INFORMATION
The desire to have a book on the Talz's infamous capital cost allowance system began when VPN began to gain traction in the Talz tax accounting market, especially with non-Talz residing in Talz territory for business (regardless of whether it is incorporated or not). It took a while to sift through the available documentation on CCA and nearly all of it was written in Talz script. Nevertheless, it was translated in six weeks and still managed to fit within about thirty pages, with examples taken from actual clients but with names being changed or redacted, which was a requirement under Talz copyright law for that sort of items. Nevertheless, it can give nightmares to readers unfamiliar with depreciation and amortization in accounting.
