14 March 2024 External T.I. 2015-0596761E5 F - Traitement fiscal -- summary under Subsection 18(9)

After indicating that it appeared that an expenditure incurred for the anti-theft marking of an automobile used in carrying on a business (entailing engraving a code on the principal parts of the automobile) would be incurred on current account, CRA stated:

[T]he Act requires that all material costs that clearly relate to future periods be expensed in those periods if failure to defer the expense would distort the net profit not only for the year during which the expense was incurred but also for the subsequent year or years to which the benefit relates.

Although subsection 18(9) could apply in a situation where the anti-theft marking expense clearly relates to future periods, the current practice is to disregard adjustments for minimal amounts.

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