The taxpayer was the sole director and an employee of a company ("RCI"), who lent the taxpayer $5 million and then forgave the debt at the behest of a potential purchaser of RCI. McArthur J. found that the taxpayer realized a corresponding benefit under s. 6(15). The taxpayer unsuccessfully argued that s. 6(15) did not apply because the debt was not a commercial obligation and the s. 80(1) definition of "forgiven amount" excludes debts that are not commercial obligations.
This argument was untenable in light of s. 6(15.1). The reference in that provision to the debt being a commercial obligation was an assumption which it imposed, rather than the stipulation of a condition which was required to be satisfied.