Words and Phrases - "actively engaged on a regular and continuous basis"
The taxpayer acquired farmland and rented 50% of it to an unrelated farm producer and 50% to a corporation that operated a nursery there and whose shareholders were him, his children and some of his brothers. In commenting on the “actively engaged on a regular and continuous basis” test, CRA stated:
]T]his requirement will be considered satisfied if the individual "is actively engaged" in the day-to-day administration or activities of the farming business. Normally, the person must devote sufficient time and attention to the corporation so that it can be determined that there has been a tangible contribution to the proper operation of the farming business. It must still be established whether, in fact, the person takes an active part in the business "on a regular and continuous basis", but any activity that is strictly occasional or conducted frequently but at irregular intervals cannot satisfy that requirement.
|Locations of other summaries||Wordcount|
|Tax Topics - Income Tax Act - Section 248 - Subsection 248(1) - Farming||nursery qualifies as farming if focused on growing rather than selling||101|
|Tax Topics - Income Tax Act - 101-110 - Section 110.6 - Subsection 110.6(1.3) - Paragraph 110.6(1.3)(c)||s. 110.6(19) election effected a post-1987 acquisition||151|
|Tax Topics - Income Tax Act - Section 70 - Subsection 70(10) - Child||extended meaning of "child"||140|
|Tax Topics - Income Tax Act - Section 73 - Subsection 73(3) - Paragraph 73(3)(c)||rollover unavailable where taxpayer rented out the land to a farmer||145|