Words and Phrases - "accounts payable"

Chrysler Canada would sell cars to the taxpayer (an automobile dealer) under conditional sales contracts, and sell the conditional sales contracts to the Canadian finance arm of Chrysler (Chrysler Credit). In finding that the amounts owing by the taxpayer to Chrysler Credit qualified as accounts payable and, therefore, were excluded from its paid-up capital for its 1993 taxation year, Trafford J. stated (at p. 799):

"The Act includes in the definition of 'current accounts payable' amounts owed to a creditor including a financial institution and not just suppliers. The amount may be part of a line of credit that is secured and bears interest."