I'm at a loss as to how someone could be a sole proprietor and not have a Schedule C or Schedule C-EZ included in their income tax return. Personal income is not business revenue and should not be used for CRA reporting. The GAR code would be a 3, which means revenue was either unknown or not considered.
CRA Small Business w/Sole Prop-Gross Revenues
If we are making a CRA small business loan to an individual that operates as a sole proprietor and who does not have any schedules as part of their tax return, can we use the personal income as the gross revenues since we relied upon that personal income in making the credit decision, or would this not be a reportable loan?
First published on 09/02/2018