When asked whether it would apply the finding in 489599 B.C. Ltd. v. The Queen, 2008 TCC 332, that the requirement for "more than five full time employees", in the definition of "personal services business" in subsection 125(7), could be satisfied with five full time employees and two part time employees, to para. (c) of the "investment business" definition, CRA stated that it will be:
applying the decision in 489599 B.C. Ltd. to the "more than five employees full time" requirement in paragraph (c)...where a foreign affiliate employs five full-time employees and one part time employee. This position supersedes the positions set out in paragraph 15 of IT-73R6 and any technical interpretation issued by the CRA prior to the decision rendered in 489599 B.C. Ltd.