Revenue Canada Taxation Head Office
XXX
R. Nanner (613) 957-3494
August 29, 1988
Dear Sirs:
This is in response to your letter of June 17, 1988 wherein you requested our opinion as to whether rental income in the situation described in your letter would be considered income from "active business" or income from "specified investment business".
Whether rental income in a particular situation is income from active business or from specified investment business is a question of fact which could only be determined by a complete review of all relevant facts and documentation. If you are contemplating a proposed transaction, we are willing to make such a determination provided you request an advance income tax ruling in accordance with the procedure described in Information Circular 70-6R. On the other hand, a completed transaction should be referred to your local district taxation office for their interpretation.
The above comments also apply to the other situations described in your letter.
We apologize for the delay in responding to your inquiry.
Yours truly,
for Director Financial Industries Division Rulings Directorate