Loans - Interest-free or low-interest

You have to include in income any benefit that a person receives as a result of an interest-free or low-interest loan because of an office, employment, or shareholding.

The benefit is the amount of interest that the person would have paid on the loan for the year at the prescribed interest rates minus the amount of interest that they paid on the loan in the year, or no later than 30 days after the end of the year.

Special rules apply to certain loans and to home-relocation loans. For information, see Exceptions and Home-relocation loans.

Forms and publications

• Income Tax Folio S2-F3-C2, Benefits and Allowances Received from Employment