6 December 2000 TEI Roundtable Q. 25, 2000-0056035 - SHAREHOLDER LOANS -- summary under Subsection 15(2.6)

The CCRA gave a generally favourable response to a question asking for confirmation that the exception in s. 15(2.6) will apply where loans are repaid as part of a series of loans and repayments, provided the series is terminated within one year after the end of the taxation year in which the loan was made. A detailed analysis of a shareholder's loan account will determine whether there has been a bona fide repayment of the loan or other indebtedness and whether the series of loans or other transactions and repayments has terminated.