2 March 2012 Internal T.I. 2011-0422811I7 - Loan received in capacity as an employee -- summary under Subsection 80.4(1)

The individual director of a private charitable foundation had submitted that a personal holding company had received a large loan from the foundation by virtue of his employment as director, so that he was exempted from tax under s. 189. In rejecting this submission, the Directorate indicated that the loan amount appeared to be in excess of what would likely be lent to other directors by virtue of their office, and that it was unlikely that the importance of his services as director would justify the provision of loans in this amount.