Principal Issues: How broadly does the CRA interpret the expression "maintaining of horses for racing" included in the definition of "farming" in ss 248(1)?
Position: Racehorse owners will be considered to be in the business of farming irrespective of whether they maintain the horses themselves or contract out that function. The provision of services relating to the maintaining of horses for racing, for a fee, generally does not constitute farming. Ancillary income from activities conducted in connection with maintaining of horses for racing may be considered farming income also, but only to the extent that those other activities do not constitute a separate business.
Reasons: Juster v. the Queen [74 DTC 6540], McLaws v. the Queen [76 DTC 6005], Levy v. the Queen [90 DTC 6346], Bourque v. the Queen [96 DTC 6412] & previous administrative positions relating to single or separate businesses.