Income Tax Act — I-3.3 120.4
ious taxation years, then the individual is deemed to have been actively engaged on a regular, substantial and continuous basis in the business throughout those five years, and (iii) for the purpose of applying paragraph (g) of the definition excluded amount in subsection (1) in respect of that property, the individual is deemed to have attained the age of 24 years before the year if the other person had attained the age of 24 years before the year; (c) an amount that is a specified individual’s income for a taxation year from, or the specified individual’s taxable capital gain or profit for the year from the disposition of, a property is deemed to be an excluded amount in respect of the specified individual for the taxation year if (i) the following conditions are met: (A) the amount would be an excluded amount in respect of the specified individual’s spouse or common-law partner for the year, if the amount were included in computing the spouse or common-law partner’s income for the year, and (B) the spouse or common-law partner has attained the age of 64 years before the year, or (ii) the amount would have been an excluded amount in respect of an individual who was, immediately before their death, the specified individual’s spouse or common-law partner, if the amount were included in computing the spouse or common-law partner’s income for their last taxation year (determined as if this section applies in respect of that year); (d) for greater certainty, an amount derived directly or indirectly from a business includes (i) an amount that (A) is derived from the provision of property or services to, or in support of, the business, or (B) arises in connection with the ownership or disposition of an interest in the person or partnership carrying on the business, and (ii) an amount derived from an amount described in this paragraph; and (e) for the purposes of this section, an individual is deemed not to be related to their spouse or common-law partner at any time in a year if, at the end of the year, the individual is living separate and apart from their spouse or common-law partner because of a breakdown of their marriage or common-law partnership. Tax on split income (2) There shall be added to a specified individual’s tax payable under this Part for a taxation year the highest individual percentage for the year multiplied by the individual’s split income for the year. Tax payable by a specified individual (3) Notwithstanding any other provision of this Act, if an individual is a specified individual for a taxation year, the individual’s tax payable under this Part for the year shall not be less than the amount, if any, determined by the formula (A + B) − (C + D) where A is the amount added under subsection (2) to the individual’s tax payable under this Part for the year; B is the amount that is the lesser of the amounts determined under paragraphs 117(2.1)(a) and (b) for the individual for the year; C is the amount deducted under section 118.3 in computing the individual’s tax payable under this Part for the year; and D is the total of all amounts each of which is the amount that (a) may be deducted under section 121 or 126 in computing the individual’s tax payable under this Part for the year, and (b) can reasonably be considered to be in respect of an amount included in computing the individual’s split income for the year. Taxable capital gain (4) If a specified individual who has not attained the age of 17 years before a taxation year would have for the taxation year, if this Act were read without reference to this section, a taxable capital gain (other than an excluded amount) from a disposition of shares (other than shares of a class listed on a designated stock exchange or shares of a mutual fund corporation) that are transferred, either directly or indirectly, in any manner whatever, to a person with whom the specified individual does not deal at arm’s length, then the amount of that taxable capital gain is deemed not