On March 1, 20X7, Martin received an interest-free loan from his employer, X Ltd., a private corporation, owned by his wife. Martin used the loan to purchase the condominium in which he lives. A loan agreement was signed by Martin agreeing to repay the loan in full after three years. Such a loan is not available to other employees. X Ltd. has a June 30 year end.
Determine the tax implications of the loan for Martin. Income tax reference: ITA 15(2), (2.1), (2.4), (2.6), 20(1)(j), 80.4(3).