20 July 2004 External T.I. 2004-0062031E5 F - Actif utilisé dans entreprise exploitée activement -- summary under Active Business Carried On by a Corporation

A corporation owned a large area of vacant land in Canada (for instance, in an industrial park) and, as the corporation wished to locate in the park, it subdivided and sold portions of the vacant lot, which was its only activity. After indicating that this level of activity likely would not constitute carrying on business for purposes of the definition of "qualified small business corporation share," CRA stated:

[T]he term "active business carried on by a corporation" includes an adventure or concern in the nature of trade, which is different from the definition of the same term in subsection 248(1). Thus, an adventure or concern in the nature of trade that would not be a business "carried on” within the ordinary meaning of that term could be an active business for the purposes of subsection 125(1) but not for the purposes of subsection 110.6(1).

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d7 import status
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