The taxpayer acquired farmland and rented 50% of it to an unrelated farm producer and 50% to a corporation that operated a nursery there and whose shareholders were him, his children and some of his brothers. In commenting on the “actively engaged on a regular and continuous basis” test, CRA stated:
]T]his requirement will be considered satisfied if the individual "is actively engaged" in the day-to-day administration or activities of the farming business. Normally, the person must devote sufficient time and attention to the corporation so that it can be determined that there has been a tangible contribution to the proper operation of the farming business. It must still be established whether, in fact, the person takes an active part in the business "on a regular and continuous basis", but any activity that is strictly occasional or conducted frequently but at irregular intervals cannot satisfy that requirement.