A taxable benefit provided to a shareholder or to a partner is not subject to source deductions or employer contributions.

If a shareholder is also an employee of a corporation, and the shareholder receives the benefit as an employee rather than as a shareholder, you must treat the benefit as though it was provided to an employee.

Note that “employee” means an individual who holds employment or an office.

Reporting the benefit on the RL-1 slip

Include the value of a taxable benefit provided to a shareholder in box O (code RO) of the shareholder's RL-1 slip. Include the value of a taxable benefit provided to a partner in box O (code RP) of the partner's RL-1 slip (see courtesy translation RL-1-T).