What goes on T2 Schedule 11 for transactions with shareholders, officers or employees?
T2 Schedule 11 reports a corporation's transactions with shareholders, officers or employees outside the ordinary course of business: payments that aren't pay or expense reimbursements, assets bought from or sold to them (including section 85 transfers), and loans still unpaid at year end. You attach it when you answer yes at line 162 of the 2026 T2.
What has to go on Schedule 11, and what stays off it?
Schedule 11 is the corporate one, not the T1 tuition schedule with the same number. Line 162 on page 2 of the 2026 T2 asks whether the corporation had any transactions, including section 85 transfers, with its shareholders, officers or employees, other than transactions in the ordinary course of business. A yes means you attach Schedule 11 canada.ca.
The schedule itself names three kinds of transaction to detail canada.ca.
| Goes on Schedule 11 | Stays off Schedule 11 |
|---|---|
| Payments made or amounts credited to a shareholder, officer or employee that weren't remuneration or a reimbursement of expenses | Salary, bonuses and expense reimbursements |
| Assets the corporation sold to or bought from them, including section 85 transfers | Transactions carried out in the ordinary course of business |
| Loans or debts owed by them, or by a person connected with a shareholder, that weren't repaid by the end of the tax year | Loans made and fully repaid within the same tax year |
| Transactions you report on Form T106 |
The CRA's T2 guide confirms both exclusions: leave out ordinary course transactions and anything listed on Form T106 canada.ca. Line 162 itself tells you to exclude transactions with nonresidents that aren't at arm's length
canada.ca. Those belong on the T106 once they top $1,000,000 for the year.
What goes in each column, from 100 to 550?
The form has twelve lines and six columns. Every column takes a dollar amount except 100 (a code) and 550 (a yes or no box) canada.ca.
| Column | Heading on the form | What you enter |
|---|---|---|
| 100 | Relationship code | 1 shareholder, 2 officer, 3 employee; use the lowest number that applies |
| 200 | Payments | Amounts paid or credited that weren't pay or expense reimbursements |
| 300 | Reimbursement (other than reimbursement of expenses) | Other reimbursements to the person |
| 400 | Loans receivable from, or debts owing to | Balance not repaid by the end of the tax year |
| 500 | Assets sold or purchased | Amount of the asset sale or purchase |
| 550 | Does section 85 apply? | Yes or No for the asset in column 500 |
The lowest code rule matters in owner managed companies. Your client who owns shares, sits as president and draws a paycheque is a 1, not a 2 or a 3.
The form on canada.ca still carries the code T2 SCH 11 (00) and the heading "1998 and later taxation years", and it's Protected B once completed canada.ca. Tax software prints the same columns.
What does a filled Schedule 11 look like for a December 31, 2026 year end?
Maya owns all the shares of Opco, is its president and takes a salary. Sam is an employee with no shares. This example uses one line per transaction so each amount traces back to the books.
| Line | Transaction in 2026 | Col 100 | Col 200 | Col 400 | Col 500 | Col 550 |
|---|---|---|---|---|---|---|
| 1 | $35,000 advanced to Maya on April 1, nothing repaid by December 31 | 1 | $35,000 | |||
| 2 | Opco paid $8,000 of Maya's home renovation, not run through payroll | 1 | $8,000 | |||
| 3 | Maya transferred equipment worth $40,000 to Opco with a section 85 election | 1 | $40,000 | Yes | ||
| 4 | Car loan to Sam for driving on the job, $6,000 owing at December 31 | 3 | $6,000 |
Three things stay off the schedule: Maya's salary, Sam's expense reimbursements, and a $10,000 advance to Maya on February 1 that she repaid on June 30.
Line 1 now needs a plan. Maya has until December 31, 2027 to repay the $35,000 before 15(2) puts it into her 2026 income laws-lois.justice.gc.ca. Until then it carries an interest benefit: $35,000 x 3% x 9/12 = $787.50 for 2026, less any interest she pays by January 30, 2027
laws-lois.justice.gc.ca. The repaid February advance is off the form but not off the hook: $10,000 x 3% x 5/12 = $125 of benefit.
Line 2 is a shareholder benefit under 15(1), so the $8,000 goes into Maya's income with no deduction for Opco; see our section 15(1) page. Line 3 also needs Form T2057, the joint 85(1) election canada.ca.
Why a balance in column 400 needs a 15(2) answer
Subsection 15(2) includes a loan in the borrower's income for the year it's made when the borrower is a shareholder or connected with one. A corporation resident in Canada is excluded as a borrower laws-lois.justice.gc.ca. Column 400 shows the CRA exactly those balances, with a relationship code beside each one.
The main way out is 15(2.6): repay within one year after the end of the lender's tax year in which the loan was made, and show the repayment wasn't part of a series of loans or other transactions and repayments laws-lois.justice.gc.ca. The full timing table and the series trap are on our shareholder loan rules page.
Employee loans have their own exceptions under 15(2.4). They cover any loan to an employee who isn't a specified employee, and a loan to any employee to buy a home, newly issued shares of the employer or a related corporation, or a vehicle used in the job. The loan must arise because of employment, not shareholdings, and come with bona fide repayment terms laws-lois.justice.gc.ca. Sam's car loan fits that pattern. It still goes in column 400, because the form asks for every unpaid loan, not only the taxable ones.
Any loan that escapes 15(2) still carries a benefit, under 80.4(1) for a loan received because of employment and 80.4(2) for one received because of a shareholding: interest at the prescribed rate, less interest paid in the year or within 30 days after it ends laws-lois.justice.gc.ca. The rate is 3% for October to December 2026 and was 3% in each earlier 2026 quarter
canada.ca. For a shareholder, 15(9) treats that benefit as a 15(1) benefit unless 6(9) or 12(1)(w) applies
laws-lois.justice.gc.ca.
Which other T2 lines and forms travel with Schedule 11?
Schedule 11 sits in a block of questions on page 2 of the T2, and several of them catch the same people canada.ca.
| T2 line | Question in short | Attach |
|---|---|---|
| 150 | Related to another corporation | Schedule 9 |
| 162 | Transactions with shareholders, officers or employees outside the ordinary course | Schedule 11 |
| 163 | After a yes at 162, a transfer of all or substantially all property between corporations not at arm's length | Schedule 44 |
| 171 | Over $1,000,000 of reportable transactions with related nonresidents | T106 |
| 173 | Private corporation with a shareholder holding 10% or more | Schedule 50 |
For a section 85 transfer, the T2 guide sends you to Form T2057, or T2058 when the property comes from a partnership canada.ca. A shareholder who shows up in column 400 should also appear on Schedule 50 if they hold 10% or more, so check the two agree before filing.
Sources
Does a salary or bonus paid to a shareholder go on Schedule 11?
No. Column 200 is for payments that weren't part of the person's remuneration or a reimbursement of expenses, so pay and expense claims stay off the schedule canada.ca.
A loan was made and repaid before year end. Does it go on Schedule 11?
My client is a shareholder, officer and employee. Which code goes in column 100?
Code 1. The form says to enter the lowest applicable number when more than one relationship exists, and shareholder is 1 canada.ca.
Does a transaction with a nonresident shareholder go on Schedule 11?
Not if they aren't at arm's length with the corporation. Line 162 excludes those, and the T2 guide excludes anything reported on the T106 canada.ca. The T106 is required once reportable transactions with related nonresidents top $1,000,000 in the year.
General information for the tax year shown, not advice for a specific client. Confirm the facts before you file or remit.