Income Tax Act — I-3.3 12
Income inclusions 12 (1) There shall be included in computing the income of a taxpayer for a taxation year as income from a business or property such of the following amounts as are applicable Services, etc., to be rendered (a) any amount received by the taxpayer in the year in the course of a business (i) that is on account of services not rendered or goods not delivered before the end of the year or that, for any other reason, may be regarded as not having been earned in the year or a previous year, or (ii) under an arrangement or understanding that it is repayable in whole or in part on the return or resale to the taxpayer of articles in or by means of which goods were delivered to a customer; Amounts receivable (b) any amount receivable by the taxpayer in respect of property sold or services rendered in the course of a business in the year, notwithstanding that the amount or any part thereof is not due until a subsequent year, unless the method adopted by the taxpayer for computing income from the business and accepted for the purpose of this Part does not require the taxpayer to include any amount receivable in computing the taxpayer’s income for a taxation year unless it has been received in the year, and for the purposes of this paragraph, an amount shall be deemed to have become receivable in respect of services rendered in the course of a business on the day that is the earlier of (i) the day on which the account in respect of the services was rendered, and (ii) the day on which the account in respect of those services would have been rendered had there been no undue delay in rendering the account in respect of the services; Interest (c) subject to subsections (3) and (4.1), any amount received or receivable by the taxpayer in the year (depending on the method regularly followed by the taxpayer in computing the taxpayer’s income) as, on account of, in lieu of payment of or in satisfaction of, interest to the extent that the interest was not included in computing the taxpayer’s income for a preceding taxation year; Reserve for doubtful debts (d) any amount deducted under paragraph 20(1)(l) as a reserve in computing the taxpayer’s income for the immediately preceding taxation year; Reserve for guarantees, etc. (d.1) any amount deducted under paragraph 20(1)(l.1) as a reserve in computing the taxpayer’s income for the immediately preceding taxation year; (d.2) any amount deducted under paragraph 20(1)(m.3) as a reserve in computing the taxpayer’s income for the immediately preceding taxation year; Reserves for certain goods and services, etc. (e) any amount (i) deducted under paragraph 20(1)(m) (including any amount substituted by virtue of subsection 20(6) for any amount deducted under that paragraph), paragraph 20(1)(m.1) or subsection 20(7), or (ii) deducted under paragraph 20(1)(n), in computing the taxpayer’s income from a business for the immediately preceding year; Negative reserves (e.1) where the taxpayer is an insurer, the amount prescribed in respect of the insurer for the year; Insurance proceeds expended (f) such part of any amount payable to the taxpayer as compensation for damage to, or under a policy of insurance in respect of damage to, property that is depreciable property of the taxpayer as has been expended by the taxpayer (i) within the year, and (ii) within a reasonable time after the damage, on repairing the damage; Payments based on production or use (g) any amount received by the taxpayer in the year that was dependent on the use of or production from property whether or not that amount was an instalment of the sale price of the property, except that an instalment of the sale price of agricultural land is not included by virtue of this paragraph; Proceeds of disposition of right to receive production (g.1) any proceeds of disposition to which subsection 18.1(6) applies; Previous reserve for quadrennial survey (h) any amount deducted as a reserve under paragraph 20(1)(o) in computing the taxpayer’