Document background
The Intragroup Loan Agreement is essential for documenting financial arrangements between related entities within a corporate group operating in Canada. This document is typically used when one group entity extends credit to another, requiring careful consideration of Canadian corporate law, tax implications, and transfer pricing regulations. The agreement must comply with federal and provincial requirements while documenting the commercial terms of the loan, including amount, interest rate, repayment schedule, and security (if any). It's particularly important for maintaining proper corporate governance, ensuring regulatory compliance, and creating a clear audit trail for related-party transactions. The document should reflect arm's length principles despite the related-party nature of the transaction, and must align with both Canadian accounting standards and international financial reporting requirements where applicable.
