12 September 2012 Annual CTF Roundtable, 2012-0453381C6 - 2012 CICA Conference -- summary under Forgiveness of Debt

An insolvent (but not bankrupt) company negotiates a settlement with CRA of unpaid source deductions and unremitted GST for less than the balance owing. Would this give rise to a forgiven amount or other income? After finding that the debt forgiveness rules would not apply, CRA stated:

Section 9… relates to income or loss from a business of property. If a settlement was reached with the CRA in relation to tax, then the difference in the amount would have to be returned to income. If however the settlement concerned the unremitted GST then this would be included in income pursuant to subsection 12(1)(x).

Topics and taglines
Topic
Income Tax Act - s. 9 - Forgiveness of Debt
Tagline
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
311562
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
346288
Extra import data
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