505. (1) For the purpose of subsection 43 (3) of the Act, the “eligible Canadian profits” of a corporation for a taxation year are the aggregate of, (a) its manufacturing and processing income for the year; (b) its mining income for the year, to the extent that such amount is not included by virtue of clause (a); and (c) its active business incomes for the year from farming, fishing and logging, to the extent that such amounts are not included by virtue of clause (a) or (b). (2) For the purpose of subsection (1), where a corporation has active business income from sources other than sources referred to in subsection (1) and active business income from the sources referred to in subsection (1), all of its active business income for a taxation year qualifies as eligible Canadian profits if, (a) the active business income from sources other than the sources referred to in subsection (1) does not exceed 20 per cent of its total active business income for the taxation year; and (b) its total active business income for the taxation year does not exceed $250,000.  R.R.O. 1990, Reg. 183, s. 505 (1, 2). (3) In this section, “farming” has the meaning given to that expression by section 1 of the Act, and the corporation’s active business income for the year from farming shall be determined in accordance with sections 5200 and 5202 of the regulations made under the Income Tax Act (Canada) applied as if the references therein to “manufacturing and processing” were references to “farming”, except that in computing the cost of capital of the corporation the cost of land owned by it or the annual rental cost incurred by the corporation for land leased by it and used by it in its farming business shall be included; “fishing” has the meaning given to that expression by section 248 of the Income Tax Act
(Canada) as made applicable by section 1 of the Act, and the corporation’s active business income from fishing shall be determined in accordance with sections 5200 and 5202 of the regulations made under the Income Tax Act (Canada) applied as if the references therein to “manufacturing and processing” were references to “fishing”; “logging” includes the sale of standing timber, the sale of the right to cut standing timber, the sale of logs, the delivery of logs to a sawmill, pulp or paper plant or other place for processing or manufacturing, the delivery of logs to a carrier for export, the export of logs, the acquisition of standing timber, the cutting of logs from standing timber, or any combination of such operations, and the corporation’s active business income from logging shall be determined in accordance with sections 5200 and 5202 of the regulations made under the Income Tax Act (Canada) applied as if the references therein to “manufacturing and processing” were references to “logging”; “manufacturing and processing income” means, in respect of a corporation, the portion of the corporation’s income for the year, determined in accordance with the Act, that would qualify as “Canadian manufacturing and processing profits” for the purposes of section 125.1 of the Income Tax Act (Canada); “mining income”, of a corporation, means the aggregate of, (a) the amount by which its mining profits exceeds the amount, if any, deducted for the year under clause 103 (1) (b) or section 108, and (b) its active business income (other than income included by virtue of clause (a)) from the production of minerals from a mine that is an industrial mineral mine for the purpose of paragraph 1100 (1) (g) of the regulations made under the Income Tax Act (Canada), and such active business shall be determined in accordance with sections 5200 and 5202 of the regulations made under the Income Tax Act (Canada) applied as if the references therein to “manufacturing and processing” were references to “industrial mineral mine”; “mining profits” means, in respect of a corporation for a taxation year, the amount, if any, by which the aggregate of, (a) the total of the corporation’s income for the taxation year from, (i) the production and processing in Canada of, (A) ore, other than iron ore or tar sands ore, from a mineral resource in Canada operated by it to any stage that is not beyond the prime metal stage or its equivalent, and (B) iron ore from a mineral resource in Canada operated by the corporation to any stage that is not beyond the pellet stage or its equivalent, and (ii) the processing in Canada of, (A) ore, other than iron ore or tar sands ore, from a mineral resource in Canada not operated by the corporation to any stage that is not beyond the prime metal stage or its equivalent, and (B) iron ore from a mineral resource in Canada not operated by the corporation to any stage that is not beyond the pellet stage or its equivalent, and (C), (D)  Revoked:  O. Reg. 355/98, s. 22 (1). Note:  Despite their revocation by O. Reg. 355/98, s. 22 (1), sub-subclauses (a) (ii) (C) and (D) continue to apply to corporations for taxation years ending before January 1, 1990.  See:  O. Reg. 355/98, s. 22 (2). (b) if the corporation owns all the issued and outstanding shares of the capital stock of a railway company throughout the year, the amount that may reasonably be considered to be the railway company’s income for its taxation year ending in the year from the transportation of the portion of the corporation’s ore that is described in subclause (a) (i), exceeds the aggregate of its losses for the year from the sources described in clause (a), where the corporation’s incomes and losses are computed in accordance with the Act on the assumption that the corporation had during the year no income or loss except from those sources and was allowed no deductions in computing its income for the year other than, (c) amounts deducted or deductible under section 18, 19 or 21 of the Act or subsection 17 (2) or (6) or section 29 of The Corporations Tax Application Rules, 1972 for the year to the extent they have not been taken into account in computing the corporation’s gross resource profits from oil or gas operations for the year under subsection 101 (1.1), and (d) any other deductions for the year that may reasonably be regarded as applicable to the sources of income described in clause (a), other than a deduction permitted under section 103 or 108.  R.R.O. 1990, Reg. 183, s. 505 (3); O. Reg. 355/98, ss. 21, 22; O. Reg. 60/06, s. 7. Instalment Base