2. (1) For the purposes of clause 9 (1) (b) of the Act, (a) any business activity that involves the production or putting into marketable form of goods or materials by employees of the small business for sale or lease by the small business from raw, unfinished or prepared goods or materials, by changing the form or content of those goods or materials, but not including, (i) construction activities, farming or fishing, (ii) activities that involve the original production or recording for a motion picture film or videotape of sound material or visual material, unless the visual element of the film or videotape is created and produced primarily by animation, (iii) the operation of a producing oil or gas well, or (iv) activities that involve the publishing, but not printing, of books, magazines or other printed matter, is prescribed as manufacturing and processing; (b) any business activity that involves the operation and management by the owner of, (i) a hotel, motel, resort or other similar establishment principally devoted to the offering of overnight accommodation and facilities incidental and ancillary thereto, (ii) a commercial tourist attraction or recreational facility that is designed for and is used principally by tourists, but not including a restaurant or other similar establishment, and (iii) a marina, (A) in which at least 30 per cent of the available berthing slips are retained by the marina for the exclusive use of transient boaters, and (B) that derives at least 50 per cent of its operating revenues from reserved moorings, sales of marine fuel and storage services, is prescribed as a tourist activity; (c) any business activity that involves the publishing of books manufactured and printed in Canada and written or translated substantially by Canadian authors is a prescribed business activity; (d) any business activity that involves scientific research, as defined under section 2900 of the regulations made under the Income Tax Act (Canada), and that is carried on directly in Canada is a prescribed business activity; (e) any business activity that involves the development of computer application or system software programs that are for sale, lease or licensing by the small business and that are marketable to users without modification, other than modification by the user, where, (i) employees of the small business carry out all of the phases of research, programming and testing, or (ii) the small business manufactures or markets programs and the employees of the small business have carried out all of the phases of research, programming and testing of the programs, is a prescribed business activity; (f) any business activity that involves the provision to business of services that are, (i) computer services, (ii) architectural, engineering or other professional scientific and related technical services, or (iii) services ancillary to or in the nature of manufacturing, is a prescribed business activity; (g) any business activity that involves, (i) the production of qualifying films, or (ii) the commercial distribution of qualifying films, is a prescribed business activity; (h) any business activity that involves, (i) the development of live theatrical events for production in Canada, or (ii) the production of live theatrical events staged in Canada, is a prescribed business activity; (i) any business activity that involves the regular publication of a periodical, except a periodical, (i) that is produced or published under licence from a publisher who publishes issues of a periodical that are printed, edited or published outside Canada, or (ii) the contents of which, except for advertisements, is substantially the same as the contents of one or more issues of one or more periodicals, that was or were printed, edited or published outside Canada, is a prescribed business activity; (j) any business activity that involves, (i) the commercial production in Canada of sound recordings on disc, audio cassette or a format that is similar to disc or audio cassette, or (ii) the commercial exploitation in Canada of the performing rights, mechanical rights, synchronization rights and other rights to musical works, is a prescribed business activity; and (k) a business activity that involves the provision of a business service to a commercial enterprise, other than the provision of a business service to an enterprise that is an associate or affiliated corporation of the small business, is a prescribed business activity. R.R.O. 1990, Reg. 1020, s. 2 (1). (2) Where an investment in a small business described in subsection 16 (1) is made by a Northern and Eastern small business development corporation, the manufacturing and processing, tourist activity and business activities described in subsection (1) and any business activity that involves the provision of services ancillary to the mining and forestry industries including, (a) transportation services for persons or materials to or from a logging or mining site; (b) transportation services provided to commercial enterprises engaged in activities ancillary to the mining or forestry industry described in clause (a); (c) equipment sales, rental, servicing and installation, where the sales, rental, service or installation is rendered to persons who are engaged directly or indirectly in the mining or forestry industry; (d) equipment sales, rental, servicing and installation rendered to a commercial enterprise that is ancillary to a mining or forestry industry described in clause (c); (e) the design, engineering or installation of equipment unique to or specifically dedicated for use in the mining or forestry industry or a commercial enterprise that is ancillary to the mining or forestry industry; (f) cone and gum gathering, forest fire fighting, reforestation and protection services provided directly or indirectly to the forestry industry; (g) the operation of a farm or nursery to provide seedlings or saplings to the forestry industry; (h) forestry and mining engineering, geological and geophysical services; (i) contract mine exploration services; and (j) assaying, geophysical prospecting, gravimetric and hydro-graphic services and magnometric and seismographic surveying, are prescribed business activities for the purpose of subclause 9 (1) (b) (iii) of the Act. R.R.O. 1990, Reg. 1020, s. 2 (2). (3) In clause (1) (c), “book” means a bound, non-periodical publication that contains no paid advertising and that is published solely for educational, technical, cultural or literary purposes; “Canadian author” means a writer or translator who is a Canadian citizen or who has been lawfully admitted to Canada for permanent residence. R.R.O. 1990, Reg. 1020, s. 2 (3). (4) For the purpose of subclause (1) (f) (i), “computer services” means the provision by the small business of, (a) access to a computer database, (b) access to computer hardware, software programs or related equipment and material directly controlled by the small business on a time-share, leased-time, rented-time or fee-for-service basis, (c) training in computer applications or operations, (d) services of data entry personnel on a temporary or casual basis, (e) services of trained technicians or other personnel for the identification and correction of computer and computer related malfunctions and for the repair and maintenance of computer systems, (f) services of systems analysts or programmers on a temporary or casual basis, (g) microfiche transfers, graphics, format conversions and other speciality services directly related to the computer industry, (h) consultation, advice, analyses or reports with respect to the attributes of various computer hardware and software systems as they relate to the specific needs of individual computer users, or (i) access to data and communications networks, to users all of whom use the service in the ordinary course of carrying on business but does not include the sale, rental or lease of computer hardware, software or related materials and equipment, computer brokerage or any similar service. R.R.O. 1990, Reg. 1020, s. 2 (4). (5) For the purpose of subclause (1) (f) (ii), the provision by the small business of a service that is, (a) the practice of architecture as defined in the Architects Act where the small business may perform that service under the provisions of that Act; (b) the practice of professional engineering as defined in the Professional Engineers Act under the authority of a certificate of authorization issued under that Act; or (c) research, analysis and reporting in any field of mathematical, physical or natural science, laboratory testing, hydrographic or land surveying, industrial designing or advising on energy conservation where the service is not, (i) a business consulting or similar service, or (ii) a legal or accounting service, is an architectural, engineering or other professional scientific or related technical service. R.R.O. 1990, Reg. 1020, s. 2 (5). (6) For the purpose of subclause (1) (f) (iii), a service ancillary to or in the nature of manufacturing means the provision by the small business to other commercial enterprises of a service that would constitute a prescribed manufacturing or processing activity but for the fact that the small business does not own the goods or materials on which an activity is performed. R.R.O. 1990, Reg. 1020, s. 2 (6). (7) For the purposes of clause (1) (g), (a) “qualifying film” means, (i) a “certified production” or a “certified feature film” as defined in subsection 1104 (2) of the regulations made under the Income Tax Act (Canada), or (ii) a production that, subsequent to the completion of principal photography, is recognized as a “Canadian program” by the Canadian Radio-television and Telecommunications Commission as set out in Public Notice CRTC 1984-94, other than productions of a promotional, advertising, institutional or industrial nature; (b) a small business shall not be considered to be involved in the production of qualifying films, (i) unless throughout each year following the date of the initial investment by the small business development corporation at least 51 per cent of the aggregate development and production costs incurred by the small business and any associates of the small business, on their own behalf or on behalf of others, are incurred in the development and production of qualifying films, or (ii) if the small business has been established for the purpose of producing a single qualifying film; and (c) a small business shall not be considered to be involved in the distribution of qualifying films unless, throughout each year following the date of the initial investment by the small business development corporation, at least 20 per cent of all distribution expenditures incurred by the small business and any associates of the small business, on their own behalf or on behalf of others, are directly related to the distribution of qualifying films. R.R.O. 1990, Reg. 1020, s. 2 (7). (8) For the purposes of clause (1) (h), “live theatrical events” means live theatrical events, (a) that have been authored by one or more individuals who are permanent residents within the meaning of the Immigration Act (Canada), or (b) in which 90 per cent of the persons who regularly participate in the company of the theatrical performance are individuals who are permanent residents within the meaning of the Immigration Act (Canada), but does not include circuses, events staged on ice, entertainment primarily featuring nudity or events that are solely musical or sporting in nature. R.R.O. 1990, Reg. 1020, s. 2 (8). (9) For the purposes of clause (1) (i), “editorial material” means news, articles of comment on or analysis of the news or articles with respect to other topics of interest to the public or to a segment of the public but does not include advertisements, catalogues, directories or listings; “periodical” means a medium of communication in print or machine readable format that, (a) is issued no less than four and no more than fifty-two times in a year, (b) contains at least 30 per cent editorial material, (c) is distributed on a non-confidential and non-membership basis, (d) is subject to audit by the Audit Bureau of Circulation or the Canadian Circulations Audit Board, and (e) where the periodical is printed, is fastened together by being bound, stapled, stitched or glued; “substantially the same” means more than 20 per cent the same. R.R.O. 1990, Reg. 1020, s. 2 (9). (10) For the purposes of clause (1) (j), a corporation shall be considered to produce sound recordings or to commercially exploit rights to musical works if at least 51 per cent of the corporation’s total annual expenditures are devoted to product development that meets the minimum Canadian Radio-television and Telecommunication Commission’s M.A.P.L. code requirements of two of four categories for sound recordings on disc or audio cassette or of one of two categories for rights exploitation. R.R.O. 1990, Reg. 1020, s. 2 (10). (11) For the purposes of clause (1) (k), “business service” includes an activity involving the provision of labour or of labour and materials that benefits a commercial enterprise, but does not include, (a) a service, (i) to or for the personal benefit of an individual, or (ii) for or by a corporation that is or has been registered as a small business development corporation, and (b) food, travel, entertainment, social and recreational services unless the services are necessary or incidental to the principal activity of the commercial enterprise; “commercial enterprise” includes a non-profit organization, a government and a government agency. R.R.O. 1990, Reg. 1020, s. 2 (11). (12) Where the services referred to in clause (b) of the definition of “business service” in subsection (11) are provided as a benefit to any employee of the commercial enterprise under a contract, agreement, collective agreement or arrangement governing that person’s employment relationship, the services shall not be considered to be necessary or incidental to the principal activity of the commercial enterprise. R.R.O. 1990, Reg. 1020, s. 2 (12).