Due To Versus Due From Shareholder
A shareholder balance can run either way. Which direction it is, and why either one makes the GIFI schedules required.
Written and reviewed by Sharad Gondaliya, CPA (Ontario), CPA Ontario Membership 61040184.
Last reviewed: November 2, 2026
Answer both questions.
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Direction Changes the Side, Not the Duty
A shareholder balance runs one of two ways. Money the corporation owes a shareholder is a liability, due to the shareholder. Money a shareholder owes the corporation is an asset, due from the shareholder.
For reporting, the direction decides which side of the balance sheet the figure appears on and nothing more. A balance in either direction is a balance, and that is what makes GIFI Schedules 100, 125 and 141 required on a return that would otherwise omit them.
The Balance Is One of Five Triggers
| On the books | Makes the GIFI schedules required |
|---|---|
| A shareholder loan, either direction | Yes |
| Share capital | Yes |
| Cash | Yes |
| An incorporation cost | Yes |
| A bank charge | Yes |
The shareholder loan balance checker answers whether a balance exists at all, and the nil GIFI balance sheet checker runs the whole set of five.
A balance is not a transaction, and the Schedule 11 shareholder transactions checker takes the other question: whether anything moved between the corporation and its shareholder during the year.
Two Balances Are Not One Balance
An amount due to a shareholder and an amount due from the same person are two balances. They are reported as two, not netted into whichever is larger, because they arose separately and are owed separately.
That is worth saying because the netted figure is the one people hold in their heads. A corporation that owes a shareholder and is owed by the same shareholder has two entries, even where the difference between them is small.
Frequently Asked Questions
Does the direction of a shareholder loan change the schedules?
No. A balance in either direction makes GIFI Schedules 100, 125 and 141 required. The direction decides which side of the balance sheet it sits on.
Can a balance run both ways at once?
Yes, and it often does. The two are separate balances and are reported separately rather than netted together.
Does this tell me the tax treatment of the loan?
No. The tax treatment turns on statutory periods and a prescribed rate, which this tool does not carry. It answers the reporting question: a balance makes the GIFI schedules required.
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