Posts Tagged
‘income tax act’

  https://decisions.fca-caf.gc.ca/fca-caf/decisions/en/item/495857/index.do Krumm v. Canada (April 19, 2021 – 2021 FCA 78, Boivin, Rennie, Woods (author) JJ.A.). Précis:   The taxpayer acquired computer software for a face price of $2.8 million with $700,000 payable up front and the balance my means of a promissory note.  He sought to deduct the $2.8 million over a period of […]

1. The income Tax Act permits two methods of accounting, mercantile system of accounting and cash system of accounting. 2. Mercantile system of accounting requires recording all transactions when they accrue or when they become due. 3. Under cash system of accounting, transactions are only recorded when actually paid or received. 4. Mercantile system is […]