We solve serious CRA tax problems

Shareholder Loans

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Unlike a sole-proprietorship, a corporation is seen by the CRA as being a separate taxpayer. This means that a shareholder, even a shareholder who owns 100% of all the issued and outstanding shares, must account for their money separate from the corporation.

A shareholder loan is said to exist when a shareholder is lent money or otherwise becomes indebted to a corporation he or she is a shareholder of. A loan is distinct from dividends paid, remuneration paid, or even a shareholder benefit.

There are some nasty consequences possible when a shareholder becomes indebted to their corporation, including the inclusion of the full amount of the loan into the shareholder’s income.

Chartered Professional Accountant in Canada, U.S. and U.K.


Sam Faris reduced the significant unreported income based on net worth audit to be nil. Sam’s approach in fighting these types of complex audits is unique and sophisticated. He found countless mistakes made by the auditor which were rectified when Sam appealed the audit decision. Instead of owing significant amount of taxes, Sam reduced it to zero. I highly recommend to hire Sam for this type of audits and any CRA problem.”

E.M., Ottawa

Pro Tip


The Small Business Deduction gives businesses a tax deduction on the first $500,000 of income. This saves an eligible corporation around up to $50,000 in income taxes. There are a number of conditions that have to be met to be eligible for this deduction.