Kustom Design Group of Companies

Here are a few more relevant topics related to shareholder loans.

Change in relationship

Even if the shareholder who received the loan ceases to be a shareholder, the loan received can continue to result in a taxable benefit.

Taxtips.ca recently came out with an updated article about Shareholder Loans.  Here is a summary of the article.

A shareholder loan is a loan by a corporation to one of its shareholders or to a person or partnership who does not deal at arm’s length with the shareholder.  This loan may result in a deemed taxable benefit to the shareholder.

The US government seems determined to crack down on its citizens living abroad who have not filed their tax returns or foreign bank account reports.  Recently, the IRS announced that they are launching a third “voluntary disclosure program” with a different penalty framework for offshore tax evaders who come forward willingly.