CRA indicates that the distinction between the provision of services and property under the split income rules will be informed by the rationale of the safe harbour exclusions
The definition of an excluded share under the split income rules requires inter alia that less than 90% of the business income of the corporation be from the provision of services. CRA declined to address the distinction between the provision of services and property respecting a short list of businesses, e.g., selling life insurance or providing investment products, and instead commented:
[I]n most cases, the distinction between whether income is from the provision of services or is other income should be clear. In cases of uncertainty, we will be prepared to provide guidance as required based on a review of all of the relevant circumstances and our understanding of the rationale for the safe harbour exclusions.