Queenswood Land Associates Ltd. v. Canada, 2000 DTC 6065 (FCA) -- summary under Forgiveness of Debt

By services, 28 November, 2015

In finding that the forgiveness of debt used to finance land inventory of a predecessor of the taxpayer occurred on capital account, so that s. 80 rather than s. 9 applied to the forgiven amount, Noel J.A. indicated that, based on the jurisprudence:

"Where a forgiveness occurs with respect to a debt incurred in a borrower-lender relationship entered into to finance the operations of the business, it will usually be treated as an abatement of a capital liability since the forgiveness falls outside the 'normal trading operations of the business'."

Topics and taglines
Tagline
settlement of land inventory debt
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
339519
Extra import data
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