Full text
If all or part of a bad debt in respect of which a direct seller has made a deduction under subsection (7) is recovered, the direct seller shall, in determining the net tax for the direct seller’s reporting period in which the bad debt or that part is recovered, add the amount determined by the formula A × B/C where A is the amount recovered; B is the tax payable in respect of the supply to which the bad debt relates; and C is the total of the consideration and tax, and any applicable provincial tax, payable in respect of that supply.