Shareholder loans and their corresponding tax implications can be a complex topic for many incorporated business owners but understanding the facts is essential when considering shareholder loans.
For example, it would be important to know that if you are a shareholder of a corporation or ‘connected” with a shareholder of a corporation and you withdraw funds from that corporation, you may be required to include the entire amount of this loan in your personal income under the “Shareholder Loans” provisions of the Act.
In this session we will discuss:
• What constitutes the shareholder loan account within your corporation.
• The basic rules imposed by the Canada Revenue Agency (CRA) when an owner-manager borrows funds from the corporation.
• Some exceptions available to allow shareholders to take loans for a longer period of time.
• Clearing the shareholder loans by either paying a salary or declaring a dividend and its advantages and disadvantages.
• Understanding the corporate and personal tax effects of paying dividends versus salaries.
Speaker Bio:
Vartika Satija, CPA, CA is an independent designated professional accountant, striving to work with small businesses to educate and provide a financial check up of their business. Her passion is to partner up with Sole Proprietors, Small Businesses and Non for Profits to provide ongoing guidance towards their unique Accounting and Tax requirements. Her mission is to ensure that small businesses are well educated and informed about the best tax and accounting practices to be able to manage their cash flows and utilize in the best possible ways that will help to grow their business, achieve their financial goals and make a difference in the community. Her intensive experience includes personal and corporate tax compliance, tax planning, and other business advisory and who have also been involved in all sorts of businesses such as manufacturing, consulting, professional services, constructions, retail, restaurants, real estate, and many more.
Website: www.vsatija.com
