| 24(1) | 902274 |
| D. Yuen | |
| (613) 957-2111 | |
| 19(1) | EACC9651 |
September 14, 1990
Dear Sirs:
Re: Paragraph 125(7)(a) of the Income Tax Act (Canada) (the "Act")
We are writing in response to your letter of August 23, 1990 wherein you requested our opinion on whether an active business as defined in paragraph 125(7)(a) of the Act is being carried on in the following situation:
24(1)
The situation provided appears to relate to a series of pending or completed transactions which should, respectively, be the subject of an advance income tax ruling or a referral to the appropriate District Office.
Whether rental income in a particular situation is income from an active business is a question of fact to be determined after an examination of all the relevant facts. The Department's views on what constitutes a full-time employee are found in paragraphs 14 to 16 of Interpretation Bulletin IT-73R4. A full-time employee would work a full business day (or a full shift) on each working day of the year subject to normal absences due to illness or vacation. Employees working part-time in a particular business (less than a full business day or a full shift) do not qualify as full-time employees.
Yours truly,
for DirectorReorganizations and Non-Resident DivisionRulings DirectorateLegislative and Intergovernmental Affairs Branch