Northwood Pulp and Paper Ltd. v. The Queen, 96 DTC 1105 (TCC), aff'd 98 DTC 6640 (FCA)

The estimated costs of reforestation work which the taxpayer became obliged to perform in future years when it harvested timber, did not form part of the cost of its log inventory. The reforestation expenditures instead were deductible as period costs only as they were actually made or incurred.

The estimated costs of reforestation work which the taxpayer became obliged to perform in future years when it harvested timber, did not form part of the cost of its log inventory. The reforestation expenditures instead were deductible as period costs only as they were actually made or incurred.