When Business Owners Borrow from The Business
It is a common practice for business owners to borrow money from their businesses for one reason or the other. While borrowing is not frowned upon in its entirety, there are certain situations which is our tax laws seek to discourage this practice for the purpose of maintaining business integrity. In particular, this relates to situations in which private companies give money to business owners other than for salary or dividend purposes, and business owners need to know this.