"I have to file 2011 to present, however, my income last several years is Shareholder loan?tax free with no T4's. How do I make sure this is done correctly?"

[kdub73]

"I have t4's for 2011,2012. But show zero income, I'm told my income is tax exempt due to shareholder loan...correct?"

[Delphision · Accepted solution]

No, probably not.  Your shareholder loan should be in a nil balance or a credit balance, showing that the company owes you funds.  If you have taken out more than you have put in, that money is taxable by way of a T5.  As long as the company owes you money, you can pay yourself tax free.

For instance, if you buy a car for the company for $10,000, it would be  debit assets $10,000 and credit shareholder loan $10,000.  You could take that $10,000 back in draws during the year tax free.  If you draw out $15,000, you will issue a T5 for $5,000 and pay tax on that on your personal tax return.

You should discuss how this works with an accountant. 

[kdub73]

I am aware of how it works, however was king to do this online and wanted to see if anyone has done this(my acct is out of reach).. Wondering if my Shareholder loans run as aggregate from previous years. thanks in advance

[Delphision]

If you know how it works, then I am completely perplexed as to why you say you took tax free money from your business since 2011, did not file T4's which have no relation to the shareholder loan, and want to know about "aggregate" loans from previous years.  You are on your own there, I'm afraid.  I can tell you that for 2011 and 2012 you will need to download desktop versions of the software and the returns will have to be mailed in as netfile is no longer available for those years.  You can still do 2013 and 2014 online.  Nefile will be available until January 16.

[kdub73]

nono, I didn't take tax free money in 2011,2012,   t4's for those 2 years. (Not sure what your afraid of). As far as aggregate I haven't taken even close as to what the Shareholder loans owe me. Thanks on the Netfile advice. Happy new Year!

[Delphision]

Then you are good to go.  It is difficult to provide any answer without all the details.  Happy new year, as well.