{"id":20427,"date":"2026-07-06T09:30:00","date_gmt":"2026-07-06T13:30:00","guid":{"rendered":"https:\/\/ebconseilfisc.com\/minimiser-les-risques-fiscaux-selon-larticle-151-lir\/"},"modified":"2026-07-12T18:50:45","modified_gmt":"2026-07-12T22:50:45","slug":"minimizing-tax-risks-under-section-151-ita","status":"publish","type":"post","link":"https:\/\/www.impots-ici.com\/en\/minimizing-tax-risks-under-section-151-ita\/","title":{"rendered":"Minimizing Tax Risks Under Section 15(1) ITA"},"content":{"rendered":"

[vc_row][vc_column][vc_column_text css=””]<\/p>\n

A corporation pays a personal expense, makes property available to a shareholder or transfers value without adequate commercial consideration. Even though no dividend was declared, the benefit may be included in the shareholder\u2019s income under subsection 15(1) of the Income Tax Act.<\/span><\/p>\n

The risk often arises from ordinary-looking bookkeeping entries: corporate credit cards, shareholder accounts, vehicles, housing, travel, family expenses or a sale of property at a preferred price. Contemporaneous records are far more persuasive than an explanation reconstructed during an audit.<\/span><\/p>\n

Identify a benefit conferred on a shareholder<\/span><\/h2>\n

The question is whether value was received because of the person\u2019s position as a shareholder. A cost may have been paid by the corporation and still be mainly personal. Conversely, a properly supported reimbursement of a genuine business expense is not necessarily a shareholder benefit.<\/span><\/p>\n

The value of the benefit depends on the facts. Use of property, debt forgiveness, a payment to a relative or a transfer below fair market value may all be reviewed. The absence of a declared dividend does not prevent an assessment.<\/span><\/p>\n

Distinguish a benefit from a loan or compensation<\/span><\/h2>\n

A shareholder debit balance may fall under the shareholder-loan rules rather than subsection 15(1). Salary, bonuses and properly declared dividends follow different rules again. The true nature of the transaction should be identified before selecting the accounting treatment.<\/span><\/p>\n

A retroactive reclassification is not always available. Resolutions, agreements, expense policies, repayments and general-ledger entries should support the treatment adopted. Where the shareholder is also an employee, the file should explain whether the benefit was received as an employee or as a shareholder.<\/span><\/p>\n

Introduce controls before year-end<\/span><\/h2>\n

The shareholder account should be reconciled regularly, not only when the T2 return is prepared. Personal costs charged to a corporate card should be repaid or treated correctly. Property used for both business and personal purposes requires usage records.<\/span><\/p>\n