In Gaumond v. The Queen, 2014 TCC 339, a shareholder forgave his loan to a company as part of the company’s proposal in bankruptcy, which proposal allowed the company to emerge from bankruptcy and continue its R&D activities. The shareholder claimed a business investment loss (BIL) on the forgiven loan under s. 39(1)(c). The Tax Court of Canada (TCC) disallowed the BIL on the ground that the loan was not disposed of to anyone when forgiven, let alone to an arm’s length person as required by s. 39(1)(c)(ii). The TCC also noted the absence of a comparable provision to s. 84(9), which provides (for greater certainty) that where a shareholder has disposed of a share of a corporation as a result of the redemption, acquisition or cancellation of the share by the corporation, the shareholder is deemed to have disposed of the share to the corporation.