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NEW In-House Counsel | Insurance | Intellectual Property | Immigration | Natural Resources | Real Estate | Tax

Mark that up as a mark to market tax win

Thursday, September 22, 2016 @ 8:00 PM | By Luis Millan

Taxpayers are entitled to use the mark-to-market method to compute income for federal tax purposes if it provides a more accurate picture of a taxpayer’s income, the Federal Court of Appeal has recently ruled.

The decision bolsters the possibility for taxpayers to use methods to compute income that are not forbidden by the Income Tax Act, affirms a Canada Revenue Agency administrative position that allows regulated financial institutions to tax derivatives on a mark-to-market basis. It may open the door to allow financial accounting to become...