I-3 - Taxation Act

Section 111.1 Disposition versions

2006-03-01

111.1. For the purposes of section 111, the value of the benefit where an obligation issued by a debtor is settled or extinguished at any time 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, otherwise than pursuant to section 37, 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. 18; 1996, c. 39, s. 38.