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Loan guarantees are taxable benefits?

When a corporation guarantees a bank loan to a shareholder, is the corporation providing a taxable benefit to the shareholder in the same way as if the corporation lent the money directly under section 15 of the ITA?

No, there is no benefit until/if the shareholder defaults.

Bd policy, though, as it muddies the waters. I assume this is a private corporation, and this confuses the line between shareholder and corporation. It will increase the likelihood of tax audits considerably.

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