4 November 1991 Memorandum (Tax Window, No. 13, p. 11, ¶1585)

Where an employee has declared bankruptcy after receiving a loan from his employer and later receives a discharge, the amount of the unpaid loan will be included in his income. S.6(15) also applies when a loan to the employee is settled after the bankruptcy of the employer.

Where an employer goes bankrupt, benefits will continue to accrue to employees or former employees under s. 80.4 until the loan or debt in question has been paid or settled.