S. 50 write-down by the debtor’s controlling shareholder triggers a forgiveness

If an individual writes-down a debt owing to him by his insolvent corporation under s. 50, the debt parking rules will apply to deem the debt to be forgiven (even if there is no settlement of the debt on general principles).

Neal Armstrong. Summary of 8 August 2014 T.I. 2014-0524951E5 under s. 80.01(8) and s. 80(2)(a).