If an individual shareholder of a corporation, who is in the business of lending money, receives a
Question:
If an individual shareholder of a corporation, who is in the business of lending money, receives a loan from the corporation with terms that are equivalent to that of clients, the principal amount will not have to be included in income. Question content area bottom Part 1 A. False because the loan is a disguised dividend distribution and must be subject to tax. B. True because the loan falls under the money lending exception at ITA 15(2.3). C. False because the corporation is required to provide less favourable terms to shareholders than to clients. D. True because distributions to shareholders are not subject to income tax under any circumstances under ITA 15(2.6).
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley