Income Tax Act (R.S.C., 1985, c. 1 (5th Supp.))

Marginal note:Deemed interest

80.5 Where a benefit is deemed by section 80.4 to have been received in a taxation year by

• (a) an individual or corporation under subsection 80.4(1), or

• (b) a person or partnership under subsection 80.4(2),

the amount of the benefit shall, for the purposes of subparagraph 8(1)(j)(i) and paragraph 20(1)(c), be deemed to be interest paid in, and payable in respect of, the year by the debtor pursuant to a legal obligation to pay interest on borrowed money.