,canada ,co/ums #a & ,rev5ue ,ag5cy ,9t]pret,n ,bullet9 ,subject3 ,9come ,tax ,act ,-m;e;t ( ,busi;s ,op],ns ,numb]3 ,,it-#cfd ,date3 ,m>* #ad1 #aigg ,ref];e3 ,p>agraph #ah7#a77a7 7al p>agraphs #ah7#a77b7 & #ad7#e77b77 #a4 ,= an am.t 6be deduct$ on ! gr.ds t x 0 an exp5se 9curr$ =! purpose ( ga9+ or produc+ 9come f a busi;s1 ! taxpay] m/ h be5 c>ry+ on busi;s 9 ! fiscal p]iod 9 : ! exp5se 0 9curr$4 ,"!=e1 ": a taxpay] proposes 6"utake a busi;s & makes "s 9itial exp5ditures ) t purpose 9 m9d1 x is nec 6e/abli% :e!r !y prec$$ ! -m;e;t (! busi;s or :e!r ! busi;s _h 9 fact -m;ed & !y 7 exp5ses 9curr$ dur+ prelim9>y /eps l1d+ 6! />t #a ,,it-#cfd a#a ( normal op],ns4 ,3sequ5tly1 ! date :5 ! busi;s c 2 sd 6h -m;ed m/ 2 "kn4 ,date ,:5 ,busi;s ,-m;es 7p>agraphs #b-e7 #b4 ,x is n possi# 6be specific ab ! po9t 9 "t :5 a 3templat$ busi;s 2comes an actual busi;s4 ,g5],y sp1k+1 x is ! ,de"p;t's view t a busi;s -m;es :5"e "s significant activ;y is "utak5 t is a regul> "p (! 9come-e>n+ process 9 t type ( busi;s or is an ess5tial prelim9>y 6normal op],ns4 ,9 ord] t "! 2 a f9d+ t a busi;s has -m;ed1 x is nec t "! 2 a fairly specific 3cept (! type ( activ;y 6be c>ri$ on &a su6ici5t organiz,nal /ructure assem#d 6"utake at l1/ ! ess5tial prelim9>ies4 ,? require;t is applica# :e!r ! project$ busi;s is 9t5d$ 6be a 3t9u+ "o or is 6be a s+le transac;n 9 ! =m ( an adv5ture 9 ! nature ( trade4 ,": an activ;y 3si/s m]ely (a review ( #b ,,it-#cfd b#a v>i\s busi;s possibilities 9 ! expect,n or hope t 9=m,n w 2 obta9$ 6ju/ify go+ 96a busi;s ( "s k9d1 s* an activ;y does n repres5t ! -m;e;t (a busi;s4 ,a busi;s wd 2 review$ z 2+ m]ely 3templat$ =! future if no s]i\s or r1sonably 3t9u\s ef=ts >e 2+ made 62g9 normal busi;s op],ns4 ,! -;ts 9 ? p>agraph d n apply1 ( c\rse1 6an exi/+ busi;s t is 3sid]+ expan.n or div]sific,n z 4t9ct f ! "utak+ (a new & sep>ate busi;s4 --------------------------------------#b #c4 ,"s situ,ns 9 : busi;s wd 2 view$ z hav+ -m;ed >e not$ 2l4 ,= example1 if a propos$ busi;s is 6be 9 ! field ( m]*&is+1 ! pur*ase ( mat]ials = resale wd 9dicate t ! busi;s has />t$1 provid$ t ! mat]ials 7 n m]ely samples & 7 adequate 9 quant;y 6-m;e a m>ket+ op],n4 ,ev5 prior 6t1 ! busi;s wd 2 view$ z hav+ />t$ if m>ket surveys 7 "utak5 on a r1sonably ext5sive basis =! purpose ( e/abli%+ ! mo/ #c ,,it-#cfd a#b appropriate way or place 6c>ry on ! busi;s4 any positive & 3t9u\s /eps tak5 69troduce a "picul> product 6an 9t5d$ m>ket >e activities ( an op]at+ nature ev5 ?\< !y prec$e ! cre,n (! sales organiz,n (! busi;s4 ,if ! propos$ busi;s 0 ! op],n (a hotel1 ! date :5 ! busi;s -m;ed wd n 2 ! "d :5 x op5$ xs doors 6gue/s b norm,y wd 2 s* e>li] "t :5 3/ruc;n (! hotel 0 "u way & >range;ts 7 2+ made = supplies1 employee tra9+1 adv]tis+1 & o!r prelim9>y require;ts ( an op]at+ hotel4 #d4 ,ano!r illu/r,n (! "t :5 a busi;s -m;ed miy require;t =! c>ry+ on (a busi;s ( t k9d is ! obta9+ (a lic;e f ! regulatory au?or;y4 ,3sequ5tly1 s* a busi;s %d 2 view$ z hav+ -m;ed n lat] ?an ! "d :5 /eps 7 tak5 9 a positive way 6obta9 a lic;e4 ,:ile normal op],ns cd n -m;e #d ,,it-#cfd b#b until ! lic;e 0 obta9$1 ! nature (! busi;s requir$ t /udies & repres5t,ns 2 "utak5 6p]suade ! regulatory au?or;y 6issue ! lic;e &! busi;s xf -m;ed :5 ^! activities 7 />t$4 #e4 ,9 ano!r situ,n t 0 review$ 9 ! c\rts1 a corpor,n 0 =m$ )! objective ( ov]s1s m>ket+ ( liquifi$ petroleum gases4 ,! ess5tial prelim9>ies 6! c>ry+ on ( ? busi;s 9 an active way 9clud$ assur.es ( supplies f produc+ oil -panies1 plans = extract+1 ga!r+1 & transport+ ! gas 6s1bo>d 0pipel9e or o!r m1ns1 ! obta9+ ( export p]mits1 >range;ts = refrig]at$ /orage & load+ facilities at ! s1bo>d & transport = %ip;ts ov]s1s1 &! negotiat+ ( firm 3tracts ) ov]s1s buy]s4 ,x 0 held 0! c\rts t ? corpor,n -m;ed busi;s :5 ^! prelim9>y /udies & negoti,ns 7 "utak5 ev5 ?\<1 9 ! 5d1 ! project 0 ab&on$4 ,! fact t no rev5ue 0 g5]at$ dur+ ? p]iod 0 held n 6be a significant #e ,,it-#cfd c#b 3sid],n 9 det]m9+ :e!r ! busi;s _h -m;ed & 0 2+ c>ri$ on4 --------------------------------------#c ,exp5ditures ,prior 6! ,-m;e;t (a ,busi;s 7p>agraph #f7 #f4 ,exp5ses 9 respect (a propos$ busi;s t >e 9curr$ prior 6! -m;e;t (! busi;s d n 3/itute a busi;s loss or a non- capital loss & ?us _c 2 appli$ ag/ 9come 9 ! ye> ! exp5ses 7 9curr$1 & _c 2 c>ri$ back 6be appli$ ag/ 9come (! prec$+ ye> or =w>d 6be appli$ ag/ 9come ( any subsequ5t ye>4 ,if capital assets >e acquir$ =a busi;s 2f ! busi;s -m;ed1 >e lat] us$ 9 ! busi;s & >e n us$ = "s o!r purpose 9 ! m1n"t1 ! capital co/ (! assets is ! am.t t x wd h be5 _h ! busi;s be5 op]at+ :5 ! assets 7 acquir$4 ,if ! busi;s = : ! capital assets 7 acquir$ n"e -m;es1 ! normal rules 9 ! ,act reg>d+ capital #f ,,it-#cfd a#c ga9s & capital losses wd apply if & :5 ! assets 7 subsequ5tly 4pos$ (4 ,exp5ditures ,af ! ,-m;e;t (a ,busi;s 7p>agraph #g7 #g4 ,af a busi;s has -m;ed1 all exp5ditures t >e recogniz$ = purposes (! ,9come ,tax ,act & t 7 made 9 respect (! busi;s >e 6be classifi$ 9 ! usual way z 2+ exp5ses 9curr$ =! purpose ( e>n+ 9come or z \tlays on a3.t ( capital4 ,exp5ses 9curr$ =! purpose ( e>n+ 9come norm,y >e deducti# 9 ! ye> :5 9curr$ ev5 if1 af all ! ef=ts made1 ! busi;s has 6be w.d up 2f xs normal op],n "e does 2g94 ,fees or o!r co/s 9curr$ 9 3nec;n )! propos$ acquisi;n ( capital assets :5 acquir$1 >e 6be class$ z eligi# capital exp5ditures if ! assets >e n 9 fact acquir$1 p]h 2c ( an ab&on;t (! busi;s4 ,9 reg>d 6repres5t,n exp5ses & 9t]e/ on m"oy borr[$ 6acquire #g ,,it-#cfd b#c deprecia# prop]ty1 see -;ts 9 ,9t]pret,n ,bullet9s ,,it-#ii & ,,it-#aba;,r1 respectively4 ,m ,?an ,"o ,busi;s 7p>agraph #h7 #h4 ,a taxpay]1 :e!r a corpor,n or an 9dividual1 may o3a.n,y 2 c>ry+ on busi;s activities t 3si/ ( two or m sep>ate busi;ses 7see ,9t]pret,n ,bullet9 ,,it-#bjf74 ,": s* is ! case1 ea* busi;s m/ 2 3sid]$ sep>ately ": x is nec 6det]m9e ! date ( -m;e;t ( "o (! busi;ses4 #h