ITA 15(1)deals with situations where a corporation has provided a benefit to a shareholder that does not appear to have a business purpose. Which of the following events would NOT require the shareholder to include a benefit in his income?

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ITA 15(1) states that a benefit provided by a corporation to a shareholder without a business purpose is taxable as income for the shareholder. However, in the case of purchasing life insurance on the life of the shareholder, this could be seen as a business purpose to ensure the financial stability of the corporation in case of sudden, unexpected death of a shareholder. Therefore, the shareholder would not be required to include the benefit in his income. Choices A, B, and C are all situations where the benefit provided does not have a clear business purpose and would be taxable as income for the shareholder.

ITA 15(1)deals with Situations Where a Corporation Has Provided a Benefit