Genex Communications inc. v. The Queen, 2010 DTC 1064 [at at 2840], 2009 TCC 583, rev'd 2011 DTC 5061 [at 5707], 2010 FCA 353) -- summary under Commercial Debt Obligation

Favreau J. found that non-interest bearing shareholder advances to a corporation satisfied paragraph (b) of the definition of "commercial debt obligation" given that the advances had been made to the corporation to fund its operations. While the French version is vague on this point, the English version clearly contemplates in paragraph (b) that not all commercial debt obligations entail an obligation to pay interest. Furthermore, it was not relevant that it was contemplated at the time of the advances that they would be subsequently converted into preferred shares.