![FarisCPA Logo](https://fariscpa.com/wp-content/uploads/2020/02/audited-financial-statements-d.jpg)
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.
![ACCA-Logo](https://fariscpa.com/wp-content/uploads/2019/10/acca.png)
![AICPA-Logo](https://fariscpa.com/wp-content/uploads/2019/10/aicpa.png)
![Chartered-professional-accountant-logo](https://fariscpa.com/wp-content/uploads/2019/10/CPA-CA-Logo.png)