From time to time, Wheatland features events for their clients as well as the community.
It is not uncommon for a shareholder of a closely held corporation to have the company pay for personal expenses and then deduct them from company income. For example purchasing a snowmobile that is used for personal enjoyment.
Be careful. There is a section of the Income Tax Act (ITA) that requires shareholders to include the value of any benefits they receive from the company, or the value of company property appropriated by them in their personal income.
If not reported as income, then subsection 15(1) of the ITA applies, and the result is punitive, That is, the deduction is not allowed to the corporation and the shareholder is taxed on the benefit. Hence, there is double taxation.
From a management perspective, it is always best to keep a clear separation of business and personal transactions, assets, and monies.