12 October 1992 External T.I. 5-922359

S. "13(7.1) of the Act does not apply in general in respect of business arrangements between a public authority and a taxpayer where the public authority carries on a business and enters into transactions with a taxpayer of the same kind as the transactions that any other person engaged in such a business would have for business reasons."

"The Department's position is that in general a taxpayer should apply generally accepted accounting principles ("GAAP") in determining profit unless a provision of the Act requires a departure from GAAP. In a situation where assistance would be included in income under section 9 of the Act, paragraph 12(1)(x) of the Act would not override that provision to also include the amount in income."

"The Department's position is that in general a taxpayer should apply generally accepted accounting principles ("GAAP") in determining profit unless a provision of the Act requires a departure from GAAP. In a situation where assistance would be included in income under section 9 of the Act, paragraph 12(1)(x) of the Act would not override that provision to also include the amount in income."