T-0.1 - Act respecting the Québec sales tax

Section 297.7.4.2 Disposition versions

2001-12-20

297.7.4.2. If all or part of a bad debt in respect of which the distributor of a direct seller has made a deduction under section 297.7.4.1 is recovered, the distributor shall, in determining the net tax for the distributor’s reporting period in which the bad debt or that part is recovered, add the amount determined by the formula

A × B / C.

For the purposes of this formula,

(1)  A is the amount recovered;

(2)  B is the tax payable in respect of the supply to which the bad debt relates; and

(3)  C is the total of the consideration and tax payable in respect of that supply.

2001, c. 53, s. 321.