{"id":1379,"date":"2015-01-19T15:43:06","date_gmt":"2015-01-19T15:43:06","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1379"},"modified":"2015-01-19T15:43:06","modified_gmt":"2015-01-19T15:43:06","slug":"tax-court-finds-forgiven-debt-was-not-disposed-of-to-the-debtor-company","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2015\/01\/tax-court-finds-forgiven-debt-was-not-disposed-of-to-the-debtor-company\/","title":{"rendered":"Tax Court finds forgiven debt was not disposed of to the debtor company"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/01\/2014-TCC-339.pdf\"><em>Gaumond v. The Queen<\/em><\/a>, 2014 TCC 339, a shareholder forgave his loan to a company as part of the company\u2019s proposal in bankruptcy, which proposal allowed the company to emerge from bankruptcy and continue its R&amp;D activities.\u00a0 The shareholder claimed a business investment loss (BIL) on the forgiven loan under s. 39(1)(c).\u00a0 The Tax Court of Canada (TCC) disallowed the BIL on the ground that the loan was not disposed of <em>to anyone<\/em> when forgiven, let alone to an arm\u2019s length person as required by s. 39(1)(c)(ii).\u00a0 The TCC also noted the absence of a comparable provision to s. 84(9), which provides (for greater certainty) that where a shareholder has disposed of a <em>share<\/em> of a corporation as a result of the redemption, acquisition or cancellation of the share by the corporation, the shareholder is deemed to have disposed of the share <em>to<\/em> the corporation.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2015\/01\/2014-TCC-339.pdf\"><em>Gaumond v. The Queen<\/em><\/a>, 2014 TCC 339, a shareholder forgave his loan to a company as part of the company\u2019s proposal in bankruptcy, which proposal allowed the company to emerge from bankruptcy and continue its R&amp;D activities.\u00a0 The&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1379","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=1379"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1379\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}