TAX-10 — Holdbacks, income tax side. The only CRA guidance is archived. IT-92R2 (1983)

Holdbacks, income tax side. The only CRA guidance is archived. IT-92R2 (1983): a progress billing less holdback becomes receivable and must be included in income when the purchaser or their architect or engineer approves it for payment. The aggregate of holdbacks becomes receivable on the later of the day the architect or engineer issues the final certificate of completion and the day the provincial lien period expires. A contractor may instead consistently include all amounts billed, and CRA will accept that if applied consistently. A holdback withheld from a subcontractor is deductible only once the liability is established by the required certificate. Say "archived guidance" in any post that uses this