Document ID: chunk:federal_register_of_legislation:C2010C00601:clause:1_7
Version: federal_register_of_legislation:C2010C00601
Segment Type: clause
Provision Reference: sch 1 cl 7
Character Range: 4426–5490

7  Subsection 118‑425(3)
Repeal the subsection, substitute:

Predominant activity

 (3) The company must satisfy at least 2 of these requirements:
 (a) more than 75% of the company's assets (determined by value) must be used primarily in activities that are not ineligible activities mentioned in subsection (13);
 (b) more than 75% of the company's employees must be engaged primarily in activities that are not ineligible activities mentioned in subsection (13);
 (c) more than 75% of the company's total assessable income, *exempt income and *non‑assessable non‑exempt income must come from activities that are not ineligible activities mentioned in subsection (13).

Note 1: This requirement is ongoing. It is not limited to the circumstances at the time the investment was made.

Note 2: See subsection (10) for the value of assets.

Note 3: A company that fails to meet at least 2 of the requirements can still be eligible if the PDF Board determines that the company's primary activity is not ineligible and the failure is temporary: see subsection (14).