Income Tax Act — I-3.3 80
in respect of a loss for any other taxation year, the fraction required to be used under section 38 for that year; (e) where an applicable fraction (as determined under paragraph 80(2)(d)) of the unapplied portion of a forgiven amount is applied under subsection 80(4) to reduce at any time a loss for a taxation year, the portion of the forgiven amount so applied shall, except for the purpose of reducing the loss, be deemed to be the quotient obtained when the amount of the reduction is divided by the applicable fraction; (f) [Repealed, 2016, c. 12, s. 23] (g) where a corporation issues a share (other than an excluded security) to a person as consideration for the settlement of a debt issued by the corporation and payable to the person, the amount paid in satisfaction of the debt because of the issue of the share is deemed to be equal to the fair market value of the share at the time it was issued; (g.1) where a debt issued by a corporation and payable to a person is settled at any time, the amount, if any, that can reasonably be considered to be the increase, as a consequence of the settlement of the debt, in the fair market value of shares of the capital stock of the corporation owned by the person (other than any shares acquired by the person as consideration for the settlement of the debt) is deemed to be an amount paid at that time in satisfaction of the debt; (h) where any part of the consideration given by a debtor to another person for the settlement at any time of a particular commercial debt obligation issued by the debtor and payable to the other person consists of a new commercial debt obligation issued by the debtor to the other person (i) an amount equal to the principal amount of the new obligation shall be deemed to be paid by the debtor at that time, because of the issue of the new obligation, in satisfaction of the principal amount of the particular obligation, and (ii) the new obligation shall be deemed to have been issued for an amount equal to the amount, if any, by which (A) the principal amount of the new obligation exceeds (B) the amount, if any, by which the principal amount of the new obligation exceeds the amount for which the particular obligation was issued; (i) where 2 or more commercial obligations issued by a debtor are settled at the same time, those obligations shall be treated as if they were settled at different times in the order designated by the debtor in a prescribed form filed with the debtor’s return of income under this Part for the debtor’s taxation year that includes that time or, if the debtor does not so designate any such order, in the order designated by the Minister; (j) for the purpose of determining, at any time, whether 2 persons are related to each other or whether any person is controlled by any other person, it shall be assumed that (i) each partnership and each trust is a corporation having a capital stock of a single class of voting shares divided into 100 issued shares, (ii) each member of a partnership and each beneficiary under a trust owned at that time the number of issued shares of that class that is equal to the proportion of 100 that (A) the fair market value at that time of the member’s interest in the partnership or the beneficiary’s interest in the trust, as the case may be is of (B) the fair market value at that time of all members’ interests in the partnership or all beneficiaries’ interests in the trust, as the case may be, and (iii) where a beneficiary’s share of the income or capital of a trust depends on the exercise by any person of, or the failure by any person to exercise, any discretionary power, the fair market value at any time of the beneficiary’s interest in the trust is equal to (A) where the beneficiary is not entitled to receive or otherwise obtain 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