Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
XXXX C. G-Toussaint (613) 995-1178
March 20, 1985
Dear Sirs:
This is in reply to your letter dated January 22, 1985 wherein you requested our interpretation of "an active business" contained in paragraph 70(11),(c) of the Income Tax Act (the "Act").
It is your opinion that since the definition of "active business" in paragraph 125(7)(a) of the Act is only for the purpose of section 125 of the Act and that section 70 of the Act does not have a definition of the term "active business", this could have a broader meaning based on the recent jurisprudence.
We cannot concur with your view. Subsection 248(1) of the Act defines, for the purposes of the Act; "active business" in relation to any business carried on by a taxpayer resident in Canada as being any business carried on by the taxpayer other than a specified investment business or a personal services business. this definition is therefore applicable for the purposes of paragraph XXXX of the Act and does exclude specified investment business.
XXXX
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