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If invoices are unpaid, will income tax recover the amount?

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What happens if an invoices go unpaid? Do companies get that money back on the taxes they paid for the anticipation of the income?

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Solution Summary

In 243 words, the solution explains what happens within a company when invoices are not paid by customers. Three situations are described including the tax implications of non payment.

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If you have a company and you have sold product on credit, then any of the following can happen:

1. Your customer pays timely, and you are happy.

2. Your customer is very slow paying, and you are not happy because you may have to borrow from the bank to meet your obligations. If you borrow, you will pay interest on the funds ...

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