I-3 - Taxation Act

Section 37.0.1 Disposition versions

2006-03-01

37.0.1. For the purposes of section 37, a benefit is deemed to have been enjoyed by an individual at any time an obligation issued by any debtor, including the individual, is settled or extinguished and the value of that benefit is deemed to be the forgiven amount at that time in respect of the obligation.

In the first paragraph, the “forgiven amount” at any time in respect of an obligation issued by a debtor has the meaning that would be assigned by section 485 if

(a)  the obligation were a commercial obligation, within the meaning assigned by section 485, issued by the debtor;

(b)  no amount included in computing income because of the obligation being settled or extinguished at that time were taken into account;

(c)  the definition of “forgiven amount” in section 485 were read without reference to paragraphs f and h; and

(d)  section 485.3 were read without reference to subparagraphs b and r of the first paragraph of that section.

1989, c. 77, s. 9; 1996, c. 39, s. 25.