Section 80.5 — Income Tax Act: Deemed interest

Where a benefit is deemed by section 80.4 to have been received in a taxation year by an individual or corporation under subsection 80.4(1), or 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.