Mr. Greg Bigson owns 100% of the shares of a private corporation called Big Co. Under the direction of Mr. Bigson, Big Co. provided a gift worth $125,000 to Mr. Bigson's wife, Susan. Susan is not an employee or shareholder of Big Co. Which of the following correctly describes the tax consequences of this gift? 

This gift will be considered an indirect payment under ITA 56(2), resulting in an income of $125,000 to be included in Greg's net income. 

This gift will be considered an indirect payment under ITA 56(2), resulting in an income of $125,000 to be included in Susan's net income. 

This gift will be considered a shareholder benefit under ITA 15(1), resulting in an income of $125,000 to be included in Greg's net income. 

This gift will be considered a shareholder benefit under ITA 15(1), resulting in an income of $125,000 to be included in Susan's net income.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct statement is This gift will be considered a shareholder benefit under ITA 151 ... View the full answer