The taxpayer renounced debt owing to him by his small business corporation pursuant to a bankruptcy proposal. Lamarre J found that, in the absence of a provision similar to s. 84(9) deeming the debt to have been disposed of to someone, all the taxpayer had was a disposition of the debt rather than a disposition to another person, which was a sufficient basis for finding that he did not have a business investment loss. Before so finding, she stated (at para. 27, TaxInterpretations translation):
in the absence of subsection 84(9) of the ITA, it can be assumed that a shareholder who deals at arm's length with the small business corporation which redeems or cancels his shares cannot benefit from a BIL
See summary under s. 39(1)(c).