Lerric Investments Corp. v. Canada, 2001 DTC 5169, 2001 FCA 14 -- summary under Specified Investment Business

By services, 28 November, 2015

The taxpayer, which employed two full-time employees directly, also had fractional co-ownership interests in eight apartment projects which also employed full-time employees. Applying the same fractional percentages to those latter full-time employees, the taxpayer had 5.05 full-time employees. In finding that the taxpayer carried on a specified investment business, Rothstein J.A. stated (at para. 17) that the definition "simply conceives of a single corporation employing more than five full-time employees", that "there are no words in the provision that imply that a proportional or sharing approach of the same employee by different employers is contemplated" and that "no co-owner or joint venturer can say that it individually employs the employees or portions of the employees".

He also stated obiter (at para. 18) that the test could be satisfied by employing five full-time and one-part time employee.

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no proportional share of JV employees
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