Campbell v. The Queen, 2000 DTC 2528 (TCC) -- summary under Subsection 50(1)

By services, 28 November, 2015

Before going on to find that the taxpayer had realized an ABIL in his 1994 taxation year, as claimed by him, Hamlyn T.C.J. stated (at p. 2530):

"A debt is usually considered to have become a bad debt when the taxpayer has exhausted all legal means of collection. The question of when a debt is to be considered uncollectible is a matter of the taxpayer's own judgment as a prudent, pragmatic, businessman. However, the Court must be satisfied that the taxpayer acted in a pragmatic, business like manner in making the determination of uncollectibility. (See Berreti v. MNR, 86 DTC 1719 at p. 1723.)"

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