Cases
Queenswood Land Associates Ltd. v. Canada, 2000 DTC 6065 (FCA)
In finding that the forgiveness of debt used to finance land inventory of a predecessor of the taxpayer occurred on capital account, so that s. 80...
MNR v. Enjay Chemical Co. Ltd., 71 DTC 5293, [1971] CTC 535 (FCTD)
In 1961 the taxpayer purchased over £5 million of oxo-alcohol from a U.S. affiliate for a deferred U.S.-dollar purchase price. The subsequent...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 246 - Subsection 246(1) | 105 | |
| Tax Topics - Income Tax Act - Section 54 - Adjusted Cost Base | 30 |
Oxford Motors Ltd. v. Minister of National Revenue, 59 DTC 1119, [1959] CTC 195, [1959] S.C.R. 548
The Canadian distributors of Morris cars, including the taxpayer, were offered by their British supplier ("Nuffield") a rebate of $250 for each...
Plimley Automobile Co. Ltd. v. MNR, 58 DTC 1112, [1958] CTC 193 (Ex Ct), briefly aff'd on consent 60 DTC 1031 (SCC)
15% of indebtedness of the taxpayer to its English supplier which it had incurred for car shipped to it was forgiven by the English supplier, with...
See Also
Molstad Development Co. v. R., 97 DTC 913, [1997] 2 CTC 2360 (TCC)
Following the sale by the taxpayer of its only asset (land inventory) at a loss, the secured creditor (a bank) forgave the amount of the debt that...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 54 - Proceeds of Disposition | 100 |
Denthor Developments Ltd. v. The Queen, 97 DTC 667, [1997] 1 CTC 2075 (TCC)
The gain of the taxpayer, which was a land developer, on being discharged pursuant to a settlement agreement of bank indebtedness of $2.2 million...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Excluded Obligation | 59 |
Alco Dispensing Canada Ltd. v. The Queen, 96 DTC 1586, [1996] 1 CTC 2662 (TCC), briefly aff'd 97 DTC 5463 (FCA)
An agreement for the sale of the shares of the taxpayer required that accrued bonuses totalling approximately $1.6 million "be reversed back into...
Administrative Policy
2 November 2023 APFF Roundtable Q. 1, 2023-0975421C6 F - Paragraph 25 of IT-293R (Archived)
IT-293R, para. 25 indicates that where the forgiveness of a trade debt occurs in a taxation year subsequent to that in which it was incurred, any...
12 September 2012 Annual CTF Roundtable, 2012-0453381C6 - 2012 CICA Conference
An insolvent (but not bankrupt) company negotiates a settlement with CRA of unpaid source deductions and unremitted GST for less than the balance...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) | forgiveness of unremitted GST | 35 |
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Forgiven Amount | tax debt not a commercial debt obligation | 113 |
20 May 2014 External T.I. 2013-0516121E5 F - Debt forgiveness
A compromise by Aco under Division I of Part III of the Bankruptcy and Insolvency Act resulted in reassessments owing by Aco for unremitted GST...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(1) - Paragraph 12(1)(x) - Subparagraph 12(1)(x)(iv) | BIA settlement of GST interest and penalties included under s. 12(1)(x)(iv) | 157 |
| Tax Topics - Income Tax Act - Section 12 - Subsection 12(2.2) | s. 12(1)(x)(iv) inclusion from BIA settlement of GST interest and penalties could be offset against related expense | 157 |
| Tax Topics - Income Tax Act - Section 248 - Subsection 248(26) | unremitted GST and QST were not obligation "issued" by debtor | 102 |
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Commercial Debt Obligation | BIA settlement of unremitted GST interest | 127 |
15 July 2009 External T.I. 2008-0289731E5 - Forgiveness of Accrued Interest
Court findings indicate that the determination as to whether the forgiveness of debts and similar obligations incurred in the course of carrying...
| Locations of other summaries | Wordcount | |
|---|---|---|
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(1) - Excluded Obligation | 62 | |
| Tax Topics - Income Tax Act - Section 80 - Subsection 80(2) - Paragraph 80(2)(b) | 197 |
IT293R "Debtor's gain on settlement of debt"
Trade Debts Forgiven
25. ...[F]orgiveness of a trade debt in the same taxation year in which it was incurred is required to be included in...