Benefit Provided to a Shareholder or to a Partner
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 because of their status as an employee (and not because they are 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 (see courtesy translation RL-1-T). Include the value of a taxable benefit provided to a partner in box O (code RP) of the partner's RL-1 slip.