Entrepreneurship & Small Business

Purchase on company card .. taxes

  • Last Updated:
  • Feb 5th, 2019 8:22 am
[OP]
Deal Addict
May 12, 2007
1078 posts
174 upvotes

Purchase on company card .. taxes

Hey,

I am traveling and a place id like to visit won't take amex. I have a corporate card and I am the sole owner of the company. I never used the card before.. if I use it now and have a personal expense on it, do I need to report it for expenses or can I just ignore it ?
3 replies
Sr. Member
Nov 12, 2014
579 posts
355 upvotes
Kingston, ON
You can put it on corporate card but repay it with personal funds.
Newbie
Feb 4, 2019
20 posts
10 upvotes
As mentioned above, you will have to report the charge as a loan from your corporation to you as a shareholder (a receivable asset in your corporation's books).

Technically, as long as you repay this "loan" to the corporation within one year after the end of your corporation's fiscal year, plus 2% interest (as per CRA's prescribed annual interest rate for the 1st quarter of 2019), there will be no tax implication to you personally. Your corporation will have to report the interest received from this loan as income on its return.

Hope that helps!

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