{"id":1279,"date":"2014-09-29T16:16:55","date_gmt":"2014-09-29T16:16:55","guid":{"rendered":"https:\/\/thor.ca\/\/blog\/?p=1279"},"modified":"2014-09-29T16:16:55","modified_gmt":"2014-09-29T16:16:55","slug":"cra-says-non-interest-bearing-loan-may-engage-s-69","status":"publish","type":"post","link":"https:\/\/www.thor.ca\/blog\/2014\/09\/cra-says-non-interest-bearing-loan-may-engage-s-69\/","title":{"rendered":"CRA says non-interest-bearing loan may engage s. 69"},"content":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/09\/2014-0532651E5.pdf\">2014-0532651E5<\/a>, the CRA said that a non-interest-bearing loan from one Canadian corporation to another (the latter, a charitable foundation) <em>may<\/em> engage s. 69(1)(a) if the loan were not repayable on demand.\u00a0 In these circumstances, the CRA is of the view that the cost of the loan <em>may<\/em> be less than the principal amount \u2013 engaging other rules such as the interest accrual rules in s. 12(9) and Regulation 7000.\u00a0 However, I find it difficult to see how s. 69(1)(a) could apply in these circumstances.\u00a0 Even if the two corporations are not dealing at arm\u2019s length, it would seem difficult to conclude that the corporation which makes the loan actually acquires the loan \u201cfrom\u201d the other corporation (as required by the text of s. 69(1)(a)).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In <a href=\"http:\/\/thor.ca\/blog\/wp-content\/uploads\/2014\/09\/2014-0532651E5.pdf\">2014-0532651E5<\/a>, the CRA said that a non-interest-bearing loan from one Canadian corporation to another (the latter, a charitable foundation) <em>may<\/em> engage s. 69(1)(a) if the loan were not repayable on demand.\u00a0 In these circumstances, the CRA is of&hellip;<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1279","post","type-post","status-publish","format-standard","hentry","category-corporate-tax"],"_links":{"self":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1279","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/comments?post=1279"}],"version-history":[{"count":0,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/posts\/1279\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/media?parent=1279"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/categories?post=1279"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thor.ca\/blog\/wp-json\/wp\/v2\/tags?post=1279"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}