Your responses are highly appreciated.
First I would like to discuss the shareholder/sole director being an officer.
As you mentioned below:
GST/HST memorandum 9.3 - Paragraph 8:
- The term “employee” includes an officer.
-The Shareholder/sole director in my scenario is also the President and Secretary (officers) of their CCPC.
Although the position of an officer is distinct from that of a director, in a small corporation(CCPC) one individual very often occupies both positions, which is the case in this scenario.
Conclusion - the shareholder/sole director is an officer for the purposes of this discussion.
Second I would like to discuss the application/calculation of the ITC:
The shareholder/sole director (also president & secretary) has incurred 2660 business kms on his personal vehicle in the year 2017.
The allowance rate set by the CRA is 0.54cents (2017).
Therefore, 0.54cents x 2660 = $1436.40
The ITC for the province of Ontario is 13/113
=$1436.4 x (13/113)
$1436.40 - $165.25 = $1271.15
Therefore the journal entry at year end will look like the following?
Auto Expense (expense for the Corp) $1271.15
HST Payable (ITC - for the Corp ) $165.25
Shareholder Loan $1436.40
(Allowance to officer for business use of personal vehicle
Thank you so much for your responses - they are greatly appreciated, as well as, your shared knowledge.