11 June 1991 T.I. (Tax Window, No. 4, p. 8, ¶1297)

Under the proposed version of s. 4(4), interest to which s. 18(4) applied in a previous year will not be required to be included in income under s. 9(1) in the year it is forgiven. Where s. 80 applies, the forgiven interest will not be included in income under s. 9(1).

S.80 does not apply to forgiven interest which was not deductible because of the thin capitalization rules.