The taxpayer was entitled to recognize a business investment loss on a loan owing to him by a Canadian-controlled private corporation ("AES") which was not repaid. The trial judge erred in finding that "active business" in the small business corporation definition meant anything more than "any business carried on by the taxpayer," as set out in the applicable part of the definition of "active business" in s. 248(1), i.e., there was no basis for the Minister's contention that the business must be "active" in the ordinary sense of that word.
As the Minister effectively acknowledged in the Amended Reply that AES carried on a business, the requirements of the definition were satisfied.