7 October 2020 APFF Roundtable Q. 18, 2020-0862931C6 F - 12(1)(x) and CEBA -- summary under Subparagraph 12(1)(x)(iv)

In commenting on the consequences of a corporation receiving a $40,000 loan under the Canada Emergency Business Account (“CEBA”) program, CRA indicated that the financial institution making the loan would reasonably be viewed as a person described in s. 12(1)(x)(i), and the forgivable portion of the loan would be included in income for the corporation’s taxation year of receipt under s. 12(1)(z)(iv) as assistance in the form of a forgivable loan in respect of an outlay or expense (the expenses funded by the loan).