
Chase Bank forgiving all debt owed by its Canadian credit card customers - gshakir
https://www.cbc.ca/news/business/chase-bank-amazon-visa-marriott-credit-card-debt-1.5239411
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nieksand
In the USA this has tax implications for those who are on the receiving end of
a forgiven debt:

[https://www.irs.gov/newsroom/what-if-my-debt-is-
forgiven](https://www.irs.gov/newsroom/what-if-my-debt-is-forgiven)

Is it the same in Canada?

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ksaj
I don't have a link for you, but in Canada, if the personal debt was connected
to a commercial transaction (ie: you bought something using your personal
credit intended to benefit an incorporated business) then it is a taxable
benefit to that business. The person owes nothing, but the corporation does.
In this case, it is of interest to the corporation to give the money back to
the individual before tax season, otherwise it is income. The person could
always treat it as an investment as well, but there are additional rules to
that which of course then affect the individual's taxes. Every penny of it
that stays in the corporation is taxable.

If the debt was personal only, it is no different than if someone gave you
money as a gift. Likewise, we don't tax lottery winnings. But we do tax gifts
that come from corporations you own or are employed by, or a board member,
etc, as income (taxable benefit). The tax connection, in each case, is because
of money going into or out of a corporation you have a financial connection
to. That's why you'll never get a lottery ticket as a gift from your boss,
paid for by the company.

If that ticket won big money, it's a whole world of hurt for the corporation.

