Say I am the Province of Ontario and you assess my taxpayer at $500, and you paid me $500, but you ended up, as CRA, collecting $200, so there's a spread of $300 uncollectable. Does that become your bad debt? What is the treatment of it? In one of the answers you did say you collected interest and penalties to compensate. By the way, I come from the banking industry, so having done spreads, I'm trying to figure out how you do your risk management and what you are talking about.
On June 12th, 2006. See this statement in context.