Mack V. Edenwold Fertilizer Services Case Study

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The case being discussed is the Mack v. Edenwold Fertilizer Services Ltd., [1996] (Weir, D. Jan, Pg 147). In this case the supplier, Edenwold Fertilizer Services Ltd., agreed to deliver the goods and backdate the payment in order to help their customer Mack deceive Revenue Canada. When Edenwold could not deliver, a subsequent agreement was made that Edenwold would pay interest on the amount Mack paid for the fertilizer. Once the fertilizer was delivered, Edenwold refused to pay the interest and Mack sued. The courts ruled against Mack as by backdating his payment for the fertilizer, he was trying to reduce his tax liability. Tax evasion is breaking a civil statute and falls under statutory illegality. Hence, the courts deemed the agreements to be unenforceable (Weir, D. Jan, Pg 147). There are two impacts of this case on a certified general accountant (CGA). The first impact is skills development. In order to remain ethical and avoid instances of statutory illegality such as tax evasions, CGA's must have the knowledge, skills and ability to show a taxpayer where they can save on taxes, and provide advice about conducting financial affairs in a way which will limit tax liability. In the aforementioned case, if Mack's company had a proficient accountant, they may have been able to come up with other ways to reduce…show more content…
This would be important for accounts receivable - money that is owed by a customer for products/services. Representing a company in small claims court requires one to be familiar with the law and how it relates to accounting practices. In the Mack v. Edenwold Fertilizer Services Ltd. case, if Mack had a knowledgeable accountant that was familiar with the law, he may have been advised not to sue as the illegality of the situation would have resulted in a loss. In turn, this advise would have saved Mack both time and

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