Is the asset recorded in the financial statements as a capital lease considered as an asset used in an active business for purposes of the definitions of a qualified small business corporation share or of a small business corporation? CRA responded:
[T]hese accounting entries should not be taken into account in determining whether a share is a QSBCS or whether a corporation is an SBC.
However…account must be taken of the FMV of the rights in the lease in determining whether a share is a QSBCS or whether a corporation is an SBC.
To determine whether or not the rights in a lease are an asset used principally in an active business carried on by the corporation, the use of the property which is the subject of the lease must be considered.