Tax questions? You ask lah! #7

Published: Wed, 01/27/21

Tax questions? You ask lah!

Your weekly dose of tax knowledge - become tax savvy in just 2 minutes!

If Company ABC take a business loan and lend it to a director, will there be any interest restriction?

Yes, there will be an interest restriction because the loan is used for non-business purpose.

If Company JKL deposits part of a bank loan into fixed deposit, is there any issue to take note?

Yes, fixed deposit is an investment which makes part of the bank loan being used for non-business purpose, thus there will be an interest restriction. Part of the loan interest incurred is not tax-deductible against business income but is deductible against the interest income.

Zen Chow

YYC Tax Guru

P.S. I've received a lot of tax questions, so now I am answering the frequently asked questions and sharing them with you weekly!

P.P.S. One more thing. I have a tax savings course that you won't want to miss out. Because it can help you save hundreds of thousands of taxes! View my course here: bit.ly/youaskzenlah

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