Ms. Janice Thiessen is an employee of Thiessen Ltd., a large company in which her husband owns 60 percent of the outstanding shares. Ms. Thiessen owns the remaining 40 percent of the shares. Thiessen Ltd. has a December 31 year end. It is the policy of the Company to provide an interest free loan of up to $25,000 to any employee who wishes to acquire a new home. They do not provide loans for home furnishings to employees.
On April 1 of the current year, Ms. Thiessen receives a $25,000 interest free loan from the Company to purchase a new home. On the same day, she receives an additional $15,000 interest free loan to purchase furnishings for the home. Both loans are to be repaid in four annual instalments to be made on March 31 of each year. Assume the prescribed rate for the current year is 2 percent. What are the current year tax implications of these loans for Ms. Thiessen?

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The Answer of Ms. Janice Thiessen is an employee of Thiessen Ltd., a large company in which her husband owns 60 percent of the outstanding shares. Ms. Thiessen owns the remaining 40 percent of the shares. Thiessen Ltd. has a December 31 year end. It is the policy of the Company to provide an interest free loan of up to $25,000 to any employee who wishes to acquire a new home. They do not provide loans for home furnishings to employees.
On April 1 of the current year, Ms. Thiessen receives a $25,000 interest free loan from the Company to purchase a new home. On the same day, she receives an additional $15,000 interest free loan to purchase furnishings for the home. Both loans are to be repaid in four annual instalments to be made on March 31 of each year. Assume the prescribed rate for the current year is 2 percent. What are the current year tax implications of these loans for Ms. Thiessen?

Ms Janice Thiessen Is an Employee of Thiessen Ltd