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During its $2022$ fiscal period ended December $31,2022,$ MaggieMade Limited made two non$-$interest$-$bearing advances to its sole shareholder and president, Ms$.$ Maggie Fornswater. The total advances were $$400,000$ and were recorded by Maggie as $$Due from Shareholder$,$ a receivable in the books and records of MaggieMade Limited. Details of the advances are set out below.

$$350,000$ was advanced to Maggie on March $1,2022$ to aid her in the purchase of a water$-$front condo $$ top floor, of course. At the time of the advance, Maggie signed a note with the corporation agreeing to repay the principal in equal annual instalments of $$35,000$ a year for the next ten years. The first principal repayment was due and paid February $28,2023.$ The company does not have a policy of making such loans to other employees and has never made a similar loan to an employee in the past.

On September $1,2022,$ $$50,000$ was advanced to Maggie to purchase a new car for herself. The car is used for employment purposes. The company has a policy of aiding its key employees to purchase automobiles that will be used to carry out their employment duties and has made such loans to other key employees in the past. At the time of the advance, Maggie signed a note with the corporation agreeing to repay the principal in equal annual instalments of $$10,000$ a year over five years. The first principal repayment was due and paid January $1,2023.$

Required:

MaggieMade Limited is not in the business of lending money. It is now December $2023$ and Maggie has asked you to advise her on the tax consequences of the above advances. Be sure to consider the tax consequences for both $2022$ and $2023$ for each advance. A thorough explanation of your reasoning that considers all potentially relevant provisions must accompany your conclusion. Assume that the prescribed interest rates applicable to taxable benefits were $3\%$ for all of $2022$ and $4\%$ for all of $2023.$

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