2 June 2008 External T.I. 2008-0264161E5 F - Benefit Conferred to a Shareholder -- summary under Subsection 15(1)

Where the parents of the shareholder of a farming corporation have the exclusive use of a residence owned by the corporation at no charge, is a s. 15(1) benefit conferred on either the shareholder or the parents? In finding that there was a benefit on the shareholder, CRA stated:

[I]t … follows among other things from subsection 15(5) that subsection 15(1) can apply where a corporation makes property available to a person related to a shareholder.

In the context of a private corporation … the CRA would presume prima facie that the sole shareholder is the directing mind of the corporation's operations.

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