As part of a general response respecting the transfer of rights by a musician to a corporation, CRA stated:
Although royalty income is generally income from property, where it can be established that the royalty income is related to an active business carried on in the year by the corporation receiving the royalty, or that the recipient corporation carries on in the year a business that generates property from which the royalties are received, such income will be considered to be income from an active business. Thus, if a corporation carries on a music composition business, the income it earns from the copyright attributable to that business will generally be considered income from an active business.