u/Glittering_Form3705

Hello I recently came across a situation where a client's corporation's Balance Sheet account for their Due from SH has been increasing year over year. From my understanding, these loans typically should be paid within the year they were borrowed from or they'd be counted as personal income.

What triggers the CRA to look at these as I am surprised this has not been addressed by them. Does it matter if it was coded to the Directors loan instead of the shareholder loan account?

Note it's been in a debit balance for the last 3-4 years now. And this is my first time seeing this - I never handled their taxes before.