Is a future income tax asset an asset used in an active business for the purposes of the definition of QSBC definition? CRA responded (reversing 2000-001582) that a future income tax asset (or deferred tax asset under IFRS) is not an asset for such purposes but that once a tax receivable arises, it may constitute an asset used in the active carrying on of a business for such purposes. For example:
[A] tax receivable due to the carryback of a loss from an active business is an asset used primarily in the business that the corporation is actively engaged in for purposes of both definitions.