Account Receivable

Commentary

The principle that the purchase (or sale) of all or substantially all the assets of a business occurs on capital account except to the extent that...

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Cases

Steeves v. The Queen, 77 DTC 5230 (FCA)

At the same time as the taxpayer and his brother purchased the remaining 50% of the common shares of a road-paving company in financial difficulty...

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Terminal Dock and Warehouse Co. Ltd. v. MNR, 68 DTC 5060, [1968] CTC 78 (Ex Ct), aff'd 68 DTC 5316 (SCC)

One of the activities of the taxpayer, whose main business was that of a dock and wharfage company, was to finance the purchase of shares in its...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 18 - Subsection 18(1) - Paragraph 18(1)(b) - Capital Loss v. Loss advances to employees on capital account 120

Ted Davy Finance Co. Ltd. v. MNR, 64 DTC 5124, [1964] CTC 194 (Ex Ct)

Proceeds received by the taxpayer, which carried on the business of purchasing conditional sales contracts (mostly from a related used car dealer)...

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Locations of other summaries Wordcount
Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Inventory conditional sales contracts not invenory 75

See Also

No. 570 v. MNR, 58 DTC 617 (TAB)

The taxpayer was one of 13 partners in a firm of chartered accountants that sold the practice to another firm, including a sale of the...

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Crompton v. Reynolds and Gibson, [1952] 1 All E.R. 888, [1952] UKHL TC (HL)

Four successive partnerships (referred to as firms Nos. 1, 2, 3 and 4) carried on business as cotton brokers. Firms Nos. 1 and 2 were deemed to be...

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Administrative Policy

1993 A.P.F.F. Round Table, Q.14 (Windows File No. 3M09520)

"The disposition of trade receivables does not normally result in a capital gain or loss ... . However, a taxpayer's trade receivables are...

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3 December 1993 External T.I. 9200995 F - Transfer of Farm Inventory to a Corporation

Since the entitlement of a farmer under a gross revenue insurance program constitutes an account receivable to him that relates to the farming...

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30 July 1992 T.I. 921871 [elaborating on 913040 below]

Accounts receivable usually will be regarded as capital property except where the taxpayer is a trader in accounts receivable.

3 June 1992 T.I. 913040

A trade debt held by a creditor is considered to be capital property unless the creditor corporation is in the business of lending money....

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1 August 1991 Memorandum 911898

Neither the assignment of accounts receivable to a creditor finance company nor the holding of receivables acquired in the ordinary course of...

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4 April 1991 Internal T.I. 7-902723

Whether the amount realized by the vendor corporation in a receivables securitization is deductible by it turns on whether the arrangement is a...

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IT-188R Archived "Sale of Accounts Receivable" 22 May 1984

Sale or purchase of trade receivables as part of business on capital account

7. Where a vendor, who...is not a trader in accounts receivable,...

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IT-442R "Bad Debts and Reserves for Doubtful Debts"

Deductibility of bad debt losses on ordinary principles

1. ...[W]here...a debt was of a kind that would have qualified for consideration as a bad...

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Articles

Tetreault, "Canadian Tax Aspects of Asset Securitization", 1992 Conference Report, c.23: Discussion of the deductibility for income tax purposes of the discount that arises on a sale of accounts receivable.