A Canadian-controlled private corporation receives distributions from a resident unit trust derived exclusively from the rental of capital properties owned by the trust. In demurring to the correspondent’s view that such s. 104(13) inclusions would “automatically” be included in computing the CCPC’s aggregate investment income, CRA stated:
[T]he exceptions in paragraph (b) of the definition of "income" in subsection 129(4) could be applicable depending on the circumstances, even though the only income allocated to the corporation by the trust would be income from property earned by the trust [pursuant to s. 108(5)(a)].
For example … the corporation's income from the trust would not be included in the computation of its total investment income if that income was incidental to an active business carried on by it.