1 May 1991 Ruling 910873 F - Shareholder Benefit

By services, 18 January, 2022
Official title
Shareholder Benefit
Language
French
CRA tags
15(1), IT-432R, 69(1)(b)
Document number
Citation name
910873
Severed letter type
d7 import status
Drupal 7 entity type
Node
Drupal 7 entity ID
633490
Extra import data
{
"field_external_guid": [],
"field_proprietary_citation": [],
"field_release_date_new": "1991-05-01 08:00:00",
"field_tags": []
}
Main text

24(1)

This is in reply to your undated memorandum regarding

24(1)

Our Comments

Our comments follow the point order of your questions. 1.

24(1)

24(1)

21(1)(b)

3.     Whether or not a particular subsection 15(1) benefit could be considered a distribution of income is a question of fact.  It does not automatically follow that a 15(1) income inclusion to a shareholder is the result of the corporation making its available to the shareholder.  It could, however, if the corporation had profits which were appropriated by that shareholder or other shareholders.

24(1)

4.     In our view the position in paragraph 20 of IT-432R which indicates that shareholders of a co-operative housing project would not be subject to a 15(1) benefit or to the provisions of paragraph 69(1)(b) because they receive less than fair market value rent

24(1)

We trust that our additional comments relative to this matter will be helpful.

E.M. WheelerChiefExempt Corporation SectionLegislative and Intergovernmental Affairs Branch