T-0.1 - Act respecting the Québec sales tax

Section 444 Disposition versions

2009-05-15

444. If a supplier has made a taxable supply (other than a zero-rated supply) for consideration to a recipient with whom the supplier was dealing at arm’s length, it is established that all or a part of the total of the consideration and tax payable in respect of the supply has become a bad debt and the supplier at any time writes off the bad debt in the supplier’s books of account, the reporting entity for the supply may, in determining the reporting entity’s net tax for the reporting period in which the bad debt is written off or for a subsequent reporting period, deduct the amount determined by the formula in the second paragraph.

The amount that may be deducted by the reporting entity under the first paragraph is determined by the formula

A × B / C.

For the purposes of this formula,

(1)  A is the tax payable in respect of the supply;

(2)  B is the total of the consideration and tax remaining unpaid in respect of the supply that was written off at that time as a bad debt; and

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

1991, c. 67, s. 444; 1993, c. 19, s. 232; 1995, c. 1, s. 328; 1997, c. 85, s. 694; 2009, c. 5, s. 661.

1999-04-01

444. Where a person has made a taxable supply, other than a zero-rated supply, for consideration to a recipient with whom the person was dealing at arm’s length, to the extent that it is established that the consideration and tax payable in respect of the supply have become in whole or in part a bad debt, the person may, in determining the net tax for the reporting period of the person in which the bad debt is written off in the person’s books of account or for a subsequent reporting period, deduct the amount determined by the formula set out in the second paragraph provided

(1)  the person reports the tax collectible in respect of the supply in the return under this chapter for the reporting period in which the tax became collectible; and

(2)  the person remits all net tax, if any, remittable as reported in that return.

The amount that may be deducted by a person under the first paragraph is determined by the formula

A × B / C.

For the purposes of this formula,

(1)  A is the tax payable in respect of the supply;

(2)  B is the total of the consideration and tax remaining unpaid in respect of the supply that was written off as a bad debt; and

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

1991, c. 67, s. 444; 1993, c. 19, s. 232; 1995, c. 1, s. 328; 1997, c. 85, s. 694.

1995-01-30

444. Where a particular person has made a taxable supply, other than a zero-rated supply, in the course of a commercial activity for consideration to a person with whom the particular person was dealing at arm’s length and has filed a return accounting for, and remitted tax under section 16 in respect of, the supply as required under this division, to the extent that it is established that the consideration and tax have become in whole or in part a bad debt, the particular person may, in determining the net tax for the reporting period of the particular person in which the bad debt is written off in the particular person’s books of account or for a reporting period that ends within four years after the end of that period, deduct an amount equal to the tax fraction of the bad debt written off.

1991, c. 67, s. 444; 1993, c. 19, s. 232; 1995, c. 1, s. 328.

1993-06-15

444. Where a particular person has made a taxable supply of property or a service, other than a zero-rated supply, in the course of a commercial activity for consideration to a person with whom the particular person was dealing at arm’s length and has filed a return accounting for, and remitted tax under section 16 in respect of, the supply as required under this division, to the extent that it is established that the consideration and tax have become in whole or in part a bad debt, the particular person may, in determining the net tax for the reporting period of the particular person in which the bad debt is written off in the particular person’s books of account or for a reporting period that ends within four years after the end of that period, deduct an amount equal to the amount obtained by multiplying the amount of the bad debt written off by the tax fraction relating to the property or service.

1991, c. 67, s. 444; 1993, c. 19, s. 232.

1992-07-01

444. Where a particular person has made a taxable supply, other than a zero-rated supply, in the course of a commercial activity for consideration to a person with whom the particular person was dealing at arm’s length and has filed a return accounting for, and remitted tax under section 16 in respect of, the supply as required under this division, to the extent that it is established that the consideration and tax have become in whole or in part a bad debt, the particular person may, in determining the net tax for the reporting period of the particular person in which the bad debt is written off in the particular person’s books of account or for a reporting period that ends within four years after the end of that period, deduct an amount equal to the tax fraction of the bad debt written off.

1991, c. 67, s. 444.