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Shareholder Loan: Understand it and Avoid Trouble with the CRA | Avalon Accounting
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Shareholder Loan Explained - Understand it and Avoid Trouble with the CRA🍁
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When a shareholder takes out a loan from a corporation, that loan is included in the shareholder's income unless the balance is repaid within one year after the year in which the debt was incurred. If the debt is not repaid within one year, and, as a result, the debt is included in the shareholder's personal income, then there is no imputed interest on the loan. If the debt is repaid within one year, then the debt is not included in the shareholder's personal income, but there is an imputed inte
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