Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
RULINGS DIRECTORATE
CORRESPONDENCE SUMMARY
Principal Issues:
Is there any tax effect where a taxpayer has a gain from a forgiveness of debt to which section 80 is applicable but the taxpayer has no loss carryforward or depreciable or capital property?
Position TAKEN:
No provisions of the Act deals specifically with the gain remaining. Depending on the circumstances, the Department could consider whether section 245 or paragraph 246(1) might apply.
Reasons FOR POSITION TAKEN:
See summary of principal issue.
Nova Scotia Institute of Chartered Accountants' Taxation
Comittee - Round Table
Question 12 Gain from Forgiveness of Debt
How is the excess of a section 80 adjustment treated? Is it considered a nothing for tax purposes?
Department's position
There are no provisions in the Act which deal specifically with any part of a gain from the forgiveness of a debt remaining after the procedure provided in paragraphs 80(1)(a) and (b) is followed. Depending on the circumstances, the Department could consider whether section 245 or subsection 246(1) of the Act might apply.
R. Gagnon
5-940161
February 10, 1994
N.B. The budget of February 22, 1994 proposes a number of changes to section 80. We refer you to the Supplementary Information and Notices of Ways and Means Motions on the Budget for the proposed changes.
All rights reserved. Permission is granted to electronically copy and to print in hard copy for internal use only. No part of this information may be reproduced, modified, transmitted or redistributed in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, or stored in a retrieval system for any purpose other than noted above (including sales), without prior written permission of Canada Revenue Agency, Ottawa, Ontario K1A 0L5
© Her Majesty the Queen in Right of Canada, 1994
Tous droits réservés. Il est permis de copier sous forme électronique ou d'imprimer pour un usage interne seulement. Toutefois, il est interdit de reproduire, de modifier, de transmettre ou de redistributer de l'information, sous quelque forme ou par quelque moyen que ce soit, de facon électronique, méchanique, photocopies ou autre, ou par stockage dans des systèmes d'extraction ou pour tout usage autre que ceux susmentionnés (incluant pour fin commerciale), sans l'autorisation écrite préalable de l'Agence du revenu du Canada, Ottawa, Ontario K1A 0L5.
© Sa Majesté la Reine du Chef du Canada, 1994
Email this Content