If a debt is owed to you (other than a debt under a mortgage or a debt resulting from a conditional sales agreement), and it remains unpaid after you have exhausted all means to collect it, it becomes a bad debt.
Original Article Source Credits: Canada , https://www.canada.ca/
Article Written By: NA
Original Article Posted on: September 29, 2020
Link to Original Article: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2020/watch-out-bad-debt-tax-schemes.html