Income Tax Act — I-3.3 79
amount that would, but for this description and the description of F, be determined under this subsection as a consequence of the surrender, and (b) in any other case, nil; E is (a) where the particular property is surrendered at that time by the debtor in circumstances in which paragraph 69(1)(b) would, but for this subsection, apply and the fair market value of all properties surrendered at that time by the debtor to the creditor exceeds the amount that would, but for this description and the description of F, be determined under this subsection as a consequence of the surrender, that excess, and (b) in any other case, nil; F is the total of all amounts each of which is the lesser of (a) the portion of a particular specified amount of a particular debt included in the amount determined for A, B, C or D in computing the debtor’s proceeds of disposition of the particular property, and (b) the total of (i) all amounts included under paragraph 6(1)(a) or subsection 15(1) in computing the income of any person because the particular debt was settled, or deemed by subsection 80.01(8) to have been settled, at or before the end of the taxation year that includes that time, (ii) all amounts renounced under subsection 66(10), (10.1), (10.2) or (10.3) by the debtor in respect of the particular debt, (iii) all amounts each of which is a forgiven amount (within the meaning assigned by subsection 80(1)) in respect of the debt at a previous time that the particular debt was deemed by subsection 80.01(8) to have been settled, (iv) where the particular debt is an excluded obligation (within the meaning assigned by subsection 80(1)), the particular specified amount, and (v) the lesser of (A) the unpaid interest accrued to that time on the particular debt, and (B) the total of (I) the amount, if any, by which the total of all amounts included because of section 80.4 in computing the debtor’s income for the taxation year that includes that time or for a preceding taxation year in respect of interest on the particular debt exceeds the total of all amounts paid before that time on account of interest on the particular debt, and (II) such portion of that unpaid interest as would, if it were paid, be included in the amount determined under paragraph 28(1)(e) in respect of the debtor; G is the fair market value at that time of the particular property; and H is the fair market value at that time of all properties surrendered by the debtor to the creditor at that time. Subsequent payment by debtor (4) An amount paid at any time by a person as, on account of or in satisfaction of, a specified amount of a debt that can reasonably be considered to have been included in the amount determined for A, C or D in subsection 79(3) in respect of a property surrendered before that time by the person shall be deemed to be a repayment of assistance, at that time in respect of the property, to which (a) subsection 39(13) applies, where the property was capital property (other than depreciable property) of the person immediately before its surrender; (b) paragraph 20(1)(hh.1) applies, where the cost of the property to the person was an eligible capital expenditure at the time the property was acquired; (c) the description of E in the definition cumulative Canadian exploration expense in subsection 66.1(6), the description of D in the definition cumulative Canadian development expense in subsection 66.2(5) or the description of D in the definition cumulative Canadian oil and gas property expense in subsection 66.4(5), as the case may be, applies, where the cost of the property to the person was a Canadian exploration expense, a Canadian development expense or a Canadian oil and gas property expense; or (d) paragraph 20(1)(hh) applies, in any other case. Subsequent application with respect to employee or shareholder debt (5) Any amount included under paragraph 6(1)(a) or subsection 15(1) in computing a person’s income for a taxation year that can reasonably be considere