Income Tax Act — I-3.3 120.4
n year of the corporation that includes that time) was from the provision of services, and (ii) the corporation is not a professional corporation; (b) immediately before that time, the specified individual owns shares of the capital stock of the corporation that (i) give the holders thereof 10% or more of the votes that could be cast at an annual meeting of the shareholders of the corporation, and (ii) have a fair market value of 10% or more of the fair market value of all of the issued and outstanding shares of the capital stock of the corporation; and (c) all or substantially all of the income of the corporation for the relevant taxation year in subparagraph (a)(i) is income that is not derived, directly or indirectly, from one or more related businesses in respect of the specified individual other than a business of the corporation. ( actions exclues ) reasonable return , in respect of a specified individual for a taxation year, means a particular amount derived directly or indirectly from a related business in respect of the specified individual that (a) would, if this subsection were read without reference to subparagraph (f)(ii) or (g)(ii) of the definition excluded amount , be an amount described in the definition split income in respect of the specified individual for the year; and (b) is reasonable having regard to the following factors relating to the relative contributions of the specified individual, and each source individual in respect of the specified individual, in respect of the related business: (i) the work they performed in support of the related business, (ii) the property they contributed, directly or indirectly, in support of the related business, (iii) the risks they assumed in respect of the related business, (iv) the total of all amounts that were paid or that became payable, directly or indirectly, by any person or partnership to, or for the benefit of, them in respect of the related business, and (v) such other factors as may be relevant. ( rendement raisonnable ) related business , in respect of a specified individual for a taxation year, means (a) a business carried on by (i) a source individual in respect of the specified individual at any time in the year, or (ii) a partnership, corporation or trust if a source individual in respect of the specified individual at any time in the year is actively engaged on a regular basis in the activities of the partnership, corporation or trust related to earning income from the business; (b) a business of a particular partnership, if a source individual in respect of the specified individual at any time in the year has an interest — including directly or indirectly — in the particular partnership; and (c) a business of a corporation, if the following conditions are met at any time in the year: (i) a source individual in respect of the specified individual owns (A) shares of the capital stock of the corporation, or (B) property that derives, directly or indirectly, all or part of its fair market value from shares of the capital stock of the corporation, and (ii) it is the case that 0.1A ≤ B + C where A is the total fair market value of all of the issued and outstanding shares of the capital stock of the corporation, B is the total fair market value of property described in clause (i)(A), and C is the portion of the total fair market value of property described in clause (i)(B) that is derived from shares of the capital stock of the corporation. ( entreprise liée ) safe harbour capital return , of a specified individual for a taxation year, means an amount that does not exceed the amount determined by the formula A × B where A is the rate equal to the highest rate of interest prescribed under paragraph 4301(c) of the Income Tax Regulations in effect for a quarter in the year; and B is the total of all amounts each of which is determined by the formula C × D/E where C is the fair market value of property contributed by the specified individual in support of a re