16 December 2004 External T.I. 2004-0070341E5 F - Déduction des intérêts sur un deuxième emprunt -- summary under Subparagraph 20(1)(c)(i)

In finding that interest on money borrowed in order to pay interest on an interest-deductible loan was itself deductible, CRA stated:

[I]nterest paid in the year or payable for the year (depending on the method ordinarily used by the taxpayer in computing income) on the second loan will be deductible in computing income from a business or property pursuant to paragraph 20(1)(c) if the interest on the first loan is deductible pursuant to that paragraph from income from that business or property.