Before finding that the non-capital losses of an acquired corporation (whose only sources of income were inter-affiliate loan and subsidiary shares) were from property rather than a business, so that they could not be utilized by the acquirer following the winding-up of the acquired corporation, the Directorate stated:
In order to determine whether the activities of a corporation, related to its investments, constitute in themselves the carrying on of a separate business, the courts have taken into account, inter alia, the following elements: the number of transactions carried out; the size of the funds invested; the frequency of transactions; the nature of the investments as well as the number of employees assigned to the transactions; and the time they spent on investment activities.