Shareholder/Employee Loans

Settle outstanding shareholder loans and interest on employee loans. If you have a shareholder loan that was made in the corporation’s previous taxation year, repay it before the end of the company’s current taxation year to avoid having the full amount of the loan included in your income. If you borrowed the money to buy a home, purchase a car for work or acquire company shares and the loan has bona fide repayment terms and interest is charged, the above requirement by the company’s year-end does not apply.

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