I-4 - Act respecting the application of the Taxation Act

Section 45 Disposition versions

1977-12-31

45. The 1971 accounts receivable in respect of a business of a taxpayer are computed, for the purposes of this chapter, by adding:

(a)  all amounts that he is entitled to receive under section 215 of the Taxation Act (chapter I-3) in respect of property sold or services rendered in the course of the business, within the meaning of section 217 of the said Act, in taxation years ending before 1972 and not included in computing his income for such years, other than the debts that he establishes to have become bad debts before the end of the 1971 fiscal period of the business; and

(b)  the aggregate of all amounts in respect of each partnership by means of which the taxpayer carried on that business, equal to such portion as is designated by him in his fiscal return to be attributable to him, of the accounts receivable of the partnership determined under paragraph a.

However, where the aggregate of the portions designated by all the partners is less than the amount that is so determined in respect of the partnership, the Minister himself may designate the portion of the accounts receivable of the partnership attributable to the taxpayer, and such portion is then deemed to be the portion designated by the taxpayer.

1972, c. 24, s. 55.