The CRA is forgiving GST owed by a corporation. Looking over S80(1) of the ITA, the debt forgiveness rules relate to commercial debt obligations, which I believe does not apply to GST. Interest was payable on the balance however it would not be tax deductible in computing the debtor’s income.
Is there guidance relating to the forgiveness of CRA obligations?
If S80 of the ITA does not apply, I expect I would treat the forgiveness as an income inclusion, at 100% opposed to only 50% under S80. Would others treat this the same?
Thank you.