The Ministry of Finance directed that unrecovered shareholder loans to a corporation be disclosed in the estate inventory of a deceased shareholder, effective 1 July 2026. Executors must report the outstanding balance, accrued interest, and repayment schedule, attaching loan documentation to the inheritance filing. The unreported amount is treated as taxable estate property, with potential penalties of up to 10 percent of the reported amount for non‑compliance. The notice also clarifies that loans written off after death are subject to gift tax rules, and provides examples of acceptable evidence such as contracts and bank statements.
Key Takeaways
- Reporting Deadline: 30 days after filing the estate inventory
- Evidence Required: Loan contracts and bank statements
- Penalty for Non‑Compliance: Up to 10 percent of reported amount
Source: Read Original Announcement