Précis: The taxpayer sought to deduct $5,078.15 in computing GST payable. The amount represented bad debts from its fitness customers in the period from 2009 to 2011. The taxpayer’s accountants testified but no one from the corporation appeared. The bad debts were computed from records given to the accountants but they had no knowledge who prepared the records or what steps were taken to collect the alleged bad debts. The Court declined to admit the documents and disallowed the claim to deduct the bad debts. There was no order as to costs since this was an informal procedure appeal.
Univers Gym Fitness Inc. v. R. - TCC: Deduction for bad debts in computing GST disallowedREAD MORE »