In a scenario where an FA earns active business income and income other than active business income, how can it be determined whether a licence it uses in the totality of its business is used principally for the purpose of gaining or producing income from an active business carried on by it? CRA responded:
[Under] paragraph (a) … of "excluded property" … [t]here must in particular be income from its business, rather than more generally "income from an active business" as that term is defined in subsection 95(1). …
[T]he following should be considered in particular: the use that is actually made of the property in the course of the various activities of the FA, the income from the use or possession of the property, the intention of the FA with respect to the use and holding of the property, the terms and conditions of ownership of the property, the nature of the activities of the FA and current practices in the particular industrial sector.