3 December 2019 CTF Roundtable Q. 9, 2019-0824421C6 - Excluded Amount-Non-related Business exception -- summary under Subparagraph (e)(i)

The (e)(i) exclusion applied where the corporation in question (which presumably is paying dividends to a specified individual who was never relevantly engaged in its business) has in a previous year sold its business to an arm’s length corporation which continues to actively carry on that business – unless the source individual in question continues an active involvement in that business, for example, under a transitional services business, in which case the related business exception would not be available to the specified individual.