Income Tax Act — I-3.3 80
n the use of any of the income or capital of the trust before the death after that time of one or more other beneficiaries under the trust, nil, and (B) in any other case, the total fair market value at that time of all beneficiaries’ interests under the trust; (k) where an obligation is denominated in a currency (other than Canadian currency), the forgiven amount at any time in respect of the obligation shall be determined with reference to the relative value of that currency and Canadian currency at the time the obligation was issued; (l) where an amount is paid in satisfaction of the principal amount of a particular commercial obligation issued by a debtor and, as a consequence of the payment, the debtor is legally obliged to pay that amount to another person, the obligation to pay that amount to the other person shall be deemed to be a commercial obligation that was issued by the debtor at the same time and in the same circumstances as the particular obligation; (m) for greater certainty, the amount that can be applied under this section to reduce another amount may not exceed that other amount; (n) except for the purposes of this paragraph, where (i) a commercial debt obligation issued by a debtor is settled at any time, (ii) the debtor is at that time a member of a partnership, and (iii) the obligation was, under the agreement governing the obligation, treated immediately before that time as a debt owed by the partnership, the obligation shall be considered to have been issued by the partnership and not by the debtor; (o) notwithstanding paragraph (n), if a commercial debt obligation, for which a particular person is liable with one or more other persons, is settled at any time in respect of the particular person but not in respect of all of the other persons, the portion of the obligation that can reasonably be considered to be the particular person’s share of the obligation shall be considered to have been issued by the particular person and settled at that time and not at any subsequent time; (p) a commercial debt obligation issued by an individual that is outstanding at the time of the individual’s death and settled at a subsequent time shall, if the estate of the individual was liable for the obligation immediately before the subsequent time, be deemed to have been issued by the estate at the same time and in the same circumstances as the obligation was issued by the individual; and (q) where a commercial debt obligation issued by an individual would, but for this paragraph, be settled at any time in the period ending 6 months after the death of an individual (or within such longer period as is acceptable to the Minister and the estate of the individual) and the estate of the individual was liable immediately before that time for the obligation (i) the obligation shall be deemed to have been settled at the beginning of the day on which the individual died and not at that time, (ii) any amount paid at that time by the estate in satisfaction of the principal amount of the obligation shall be deemed to have been paid at the beginning of the day on which the individual died, (iii) any amount given by the estate at or before that time to another person as consideration for assumption by the other person of the obligation shall be deemed to have been given at the beginning of the day on which the individual died, and (iv) paragraph 80(2)(b) shall not apply in respect of the settlement to interest that accrues within that period, except that this paragraph does not apply in circumstances in which any amount is because of the settlement included under paragraph 6(1)(a) or subsection 15(1) in computing the income of any person or in which section 79 applies in respect of the obligation. Reductions of non-capital losses (3) Where a commercial obligation issued by a debtor is settled at any time, the forgiven amount at that time in respect of the obligation shall be applied to reduce at that time, in the following order, (a) t