[Verse 1] Start with accounting income on your page Book profits tell one story on the stage But tax rules play a different game tonight Converting numbers to get taxable right Permanent differences never reverse Temporary ones will flip in future verse [Chorus] Permanent stays, temporary plays Add back the meals at fifty percent ways Fines and penalties never deduct Depreciation and CCA reconstruct From book to tax we make the switch Following rules that never glitch [Verse 2] Entertainment meals are only half allowed Fines and penalties disallowed out loud Political donations can't reduce your tax These permanent hits never circle back While timing differences will even out Future reversals remove all doubt [Chorus] Permanent stays, temporary plays Add back the meals at fifty percent ways Fines and penalties never deduct Depreciation and CCA reconstruct From book to tax we make the switch Following rules that never glitch [Bridge] Book depreciation straight line flows CCA declining balance shows Faster write-offs in early years Slower later as time appears Deferred tax assets when book exceeds Liabilities when CCA leads [Verse 3] Warranty reserves book but not tax Add them back then subtract what's tracked Bad debt allowance estimated high Actual write-offs qualify These timing differences create the gap Between the book and tax roadmap [Chorus] Permanent stays, temporary plays Add back the meals at fifty percent ways Fines and penalties never deduct Depreciation and CCA reconstruct From book to tax we make the switch Following rules that never glitch [Outro] Reconcile the numbers every year Make adjustments crystal clear Taxable income calculated right Book to tax conversion done tonight
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