Paul Is One of Six Shareholders, but Not an Employee

question 108

Multiple Choice

Paul is one of six shareholders, but not an employee, of a Canadian controlled private cor- poration that manufactures doors.The corporation has a large amount of cash on hand and the other shareholders have agreed that the corporation can lend him $200,000 for a few years.To avoid having the principal included in his Taxable Income, the loan must meet which of the following conditions?

• A)It must be made at the interest rate prescribed by the Regulations to the Income Tax
• Act)
• B)It must be for the purchase of the company's shares.
• C)It must be repaid within one year of the end of the fiscal year in which it was made.
• D)It must have a specific repayment date.

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Definitions:

Childhood Events

Significant occurrences in one’s early years that can have a lasting impact on their development and personality.

Therapeutically Relevant

Pertaining to or having significance in therapy or treatment, particularly regarding effectiveness or applicability.

Transference

A patient’s tendency to respond to the analyst or therapist in ways that re-create her responses to major figures in her life.

Catharsis

A therapeutic process of releasing and thereby providing relief from strong or repressed emotions.