,CANADA ,CU/OMS
            & ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
             ,,IT-#GC;,R#F

             ,9 ,"O ,VOLUME
           ,PR9T ,PAGES #A-AA
       ,BRL ,PAGES ;I-;II & #A-FA
    
































                 ,9DEX
    
                               ,BRL PAGE
,3T5TS """""""""""""""""""""""""""""" #C
,APPLIC,N """"""""""""""""""""""""""" #E
,SUMM>Y """"""""""""""""""""""""""""" #F
,4CUS.N & ,9T]PRET,N """""""""""""""" #H
  ,G5]AL ,-;TS """""""""""""""""""""" #H
  ,9COME ,F AN ,ACTIVE ,BUSI;S
    ,C>RI$ ON 9 ,CANADA--,P>AGRAPH
    #ABE7#A77A7 """"""""""""""""""""" #I
    ,ACTIVE ,BUSI;S """"""""""""""""" #I
    ,9COME ,F AN ,ACTIVE ,BUSI;S """ #AJ
    ,CESS,N (A ,BUSI;S """"""""""""" #AI
    ,M1N+ ( 8,C>RI$ ,ON 9 ,CANADA "" #BA
    ,SPECIFI$ ,9VE/;T ,BUSI;S """""" #BB
    ,P]SONAL ,S]VICES ,BUSI;S """""" #BH
    ,SPECIFI$ ,"PN]%IP ,9COME """""" #CA
    ,SPECIFI$ ,"PN]%IP ,LOSS """"""" #CF
  ,TAXA# ,9COME ,LIMIT--,P>AGRAPH
    #ABE7#A77B7 """""""""""""""""""" #CG
  ,BUSI;S ,LIMIT--,P>AGRAPH
    #ABE7#A77C7 """""""""""""""""""" #CH
    ,AM.T ( ,LIMIT """"""""""""""""" #CH
                                      ;I
                 ,9DEX
    ,AGREE;T ,FIL$ 0,ASSOCIAT$
      ,,CCPC'S """"""""""""""""""""" #DJ
    ,": ,E6ECTIVE ,AGREE;T ,N
      ,FIL$ """""""""""""""""""""""" #DA
    ,TAX,N ,YE> ,LESS ,?AN #EA
      ,WEEKS """"""""""""""""""""""" #DB
    ,MULTIPLE ,TAX,N ,YE>S 9 !
      ,SAME ,CAL5D> ,YE> """"""""""" #DB
    ,REDUC;N (! ,BUSI;S ,LIMIT =
      ,L>GE ,CORPOR,NS """"""""""""" #DF
    ,REVIS$ ,AGREE;T """"""""""""""" #DI
  ,IMPACT (! ,SMALL ,BUSI;S
    ,DEDUC;N ON ! ,A3EL]AT$ ,TAX
    REDUC;N = ,,CCPC'S & ON ,ANY
    ,G5]AL ,TAX ,REDUC;N ,CLAIM$
    0A ,,CCPC """""""""""""""""""""" #EB
,EXPLAN,N ( ,*ANGES """""""""""""""" #EG
  ,9TRODUC;N """"""""""""""""""""""" #EG
  ,R1SONS =! ,REVI.N """"""""""""""" #EH
  ,LEGISLATIVE & ,O!R ,*ANGES """""" #EH



                                     ;II
,CANADA ,CU/OMS                       #A
& ,REV5UE ,AG5CY

              ,9COME ,TAX
          ,9T]PRET,N ,BULLET9
    
,NUMB]3 ,,IT-#GC;,R#F
,DATE3 ,M>* #BE1 #BJJB
,SUBJECT3 ,9COME ,TAX ,ACT
  ,! ,SMALL ,BUSI;S ,DEDUC;N
,REF];E3 ,SEC;N #ABE 7AL SUBSEC;NS
  #AD7#A71 #ABC.D1 #ABI7#D71 & #ABI7#F71
  ! DEF9I;NS 8ACTIVE BUSI;S0 & 8SPECIFI$
  %>EHOLD]0 9 SUBSEC;N #BDH7#A71
  P>AGRAPH #AH7#A77P71 SUBP>AGRAPH
  #AB7#A77E77;II7 (! ,9COME ,TAX ,ACT &
  SEC;N #FGJA (! ,9COME ,TAX ,REGUL,NS7

  ,AT ! ,CANADA ,CU/OMS & ,REV5UE ,AG5CY
7,,CCRA71 WE ISSUE 9COME TAX 9T]PRET,N
BULLET9S 7,,IT'S7 9 ORD] 6PROVIDE
TE*NICAL 9T]PRET,NS & POSI;NS REG>D+
C]TA9 PROVI.NS 3TA9$ 9 9COME TAX LAW4
,DUE 6_! TE*NICAL NATURE1 ,,IT'S >E US$
PRIM>ILY 0\R /AFF1 TAX SPECIALI/S1    #A
             ,,IT-#GC;,R#F           A#A
& O!R 9DIVIDUALS :O H AN 9T]E/ 9 TAX
MATT]S4 ,= ^? R1D]S :O PREF] A LESS
TE*NICAL EXPLAN,N (! LAW1 WE (F] O!R
PUBLIC,NS1 S* Z TAX GUIDES & PAMPHLETS4
  ,:ILE ! -;TS 9 A "PICUL> P>AGRAPH 9 AN
,,IT MAY RELATE 6PROVI.NS (! LAW 9 =CE
AT ! "T !Y 7 MADE1 S* -;TS >E N A
SUB/ITUTE =! LAW4 ,! R1D] %D1 "!=E1
3SID] S* -;TS 9 LI<T (! RELEVANT
PROVI.NS (! LAW 9 =CE =! "PICUL> TAX,N
YE> 2+ 3SID]$1 TAK+ 96A3.T ! E6ECT ( ANY
RELEVANT AM5D;TS 6^? PROVI.NS OR
RELEVANT C\RT DECI.NS O3URR+ AF ! DATE
ON : ! -;TS 7 MADE4
  ,SUBJECT 6! ABV1 AN 9T]PRET,N OR
POSI;N 3TA9$ 9 AN ,,IT G5],Y APPLIES Z
(! DATE ON : X 0 PUBLI%$1 UN.S O!RWISE
SPECIFI$4 ,IF "! IS A SUBSEQU5T *ANGE 9
T 9T]PRET,N OR POSI;N &! *ANGE IS
B5EFICIAL 6TAXPAY]S1 X IS USU,Y E6ECTIVE
= FUTURE ASSESS;TS & REASSESS;TS4 ,IF1
ON ! O!R H&1 ! *ANGE IS N FAV\RA#
6TAXPAY]S1 X W NORM,Y 2 E6ECTIVE =!
CURR5T & SUBSEQU5T TAX,N YE>S OR =    #B
             ,,IT-#GC;,R#F           B#A
TRANSAC;NS 5T]$ 96AF ! DATE ON : ! *ANGE
IS PUBLI%$4
  ,IF Y H ANY -;TS REG>D+ MATT]S 4CUSS$
9 AN ,,IT1 PL1SE S5D !M TO3
  ,MANAG]1 ,TE*NICAL ,PUBLIC,NS &
    ,PROJECTS ,SEC;N
  ,9COME ,TAX ,RUL+S ,DIRECTORATE
  ,POLICY & ,LEGISL,N ,BRAN*
  ,CANADA ,CU/OMS & ,REV5UE ,AG5CY
  ,OTTAWA ,,ON
  ,K#A;,A #J;,L#E

  ,MO/ ( \R PUBLIC,NS >E AVAILA# ON \R
,WEB SITE AT3 _+WWW.CCRA.GC.CA_:
  ,? V].N IS ONLY AVAILA# ELECTRONIC,Y4

                 ,3T5TS
    
,APPLIC,N
,SUMM>Y
,4CUS.N & ,9T]PRET,N
  ,G5]AL ,-;TS 7P>AGRAPHS #A-B7
  
                                      #C
             ,,IT-#GC;,R#F           C#A
  ,9COME ,F ,AN ,ACTIVE ,BUSI;S ,C>RI$
    ,ON ,9 ,CANADA--,P>AGRAPH
    #ABE7#A77,A7
    ,ACTIVE ,BUSI;S 7P>AGRAPH #C7
    ,9COME ,F AN ,ACTIVE ,BUSI;S
      7P>AGRAPHS #D-H7
    ,CESS,N (A ,BUSI;S 7P>AGRAPH #I7
    ,M1N+ ( 8,C>RI$ ,ON 9 ,CANADA0
      7P>AGRAPH #AJ7
    ,SPECIFI$ ,9VE/;T ,BUSI;S 7P>AGRAPHS
      #AA-AG7
    ,P]SONAL ,S]VICES ,BUSI;S 7P>AGRAPHS
      #AH-AI7
    ,SPECIFI$ ,"PN]%IP ,9COME 7P>AGRAPH
      #BJ7
    ,SPECIFI$ ,"PN]%IP ,LOSS 7P>AGRAPH
      #BA7
  ,TAXA# ,9COME ,LIMIT--,P>AGRAPH
    #ABE7#A77,B7 7,P>AGRAPH #BB7
  ,BUSI;S ,LIMIT--,P>AGRAPH #ABE7#A77,C7
    ,AM.T ( ,LIMIT 7P>AGRAPH #BC7
    ,AGREE;T ,FIL$ 0,ASSOCIAT$ ,,CCPC'S
      7P>AGRAPHS #BD-BE7
                                      #D
             ,,IT-#GC;,R#F           D#A
    ,": ,E6ECTIVE ,AGREE;T ,N ,FIL$
      7P>AGRAPH #BF7
    ,TAX,N ,YE> ,LESS ,?AN #EA ,WEEKS
      7P>AGRAPH #BG7
    ,MULTIPLE ,TAX,N ,YE>S 9 ! ,SAME
      ,CAL5D> ,YE> 7P>AGRAPH #BH7
    ,REDUC;N (! ,BUSI;S ,LIMIT = ,L>GE
      ,CORPOR,NS 7P>AGRAPH #BI7
    ,REVIS$ ,AGREE;T 7P>AGRAPH #CJ7
  ,IMPACT ,( ,! ,SMALL ,BUSI;S ,DEDUC;N
    ,ON ,! ,A3EL]AT$ ,TAX ,REDUC;N ,=
    ,,CCPC'S ,& ,ON ,ANY ,G5]AL ,TAX
    ,REDUC;N ,CLAIM$ ,0A ,,CCPC
    7,P>AGRAPH #CA7
,EXPLAN,N ( ,*ANGES

               ,APPLIC,N
    
  ,? BULLET9 C.ELS & REPLACES
,,IT-#GC;,R#E1 DAT$ ,FEBRU>Y #E1 #AIIG4



                                      #E
                ,SUMM>Y               #B
    
  ,? BULLET9 D1LS )! RULES 3C]N+ ! SMALL
BUSI;S DEDUC;N T MAY 2 CLAIM$ 0A
,CANADIAN-3TROLL$ PRIVATE CORPOR,N
7,,CCPC7 9 RESPECT ( XS 9COME F C>RY+ ON
AN ACTIVE BUSI;S 9 ,CANADA4
  ,ACTIVE BUSI;S C>RI$ ON 0A ,,CCPC 9
,CANADA DOES N 9CLUDE A 8SPECIFI$ 9VE/;T
BUSI;S0 OR A 8P]SONAL S]VICES BUSI;S04
,^! TWO TYPES ( BUSI;SES >E 4CUSS$ 9 ?
BULLET94 ,9 A4I;N1 DETAILS (! -PON5TS (!
CALCUL,N (! SMALL BUSI;S DEDUC;N >E
PROVID$4,SEC;N #ABE (! ,9COME ,TAX ,ACT
PROVIDES =A CORPORATE TAX REDUC;N
7-MONLY REF]R$ 6Z 8! SMALL BUSI;S
DEDUC;N07 9 RESPECT ( 9COME (A ,,CCPC F
AN ACTIVE BUSI;S C>RI$ ON 0X 9 ,CANADA4
,! SMALL BUSI;S DEDUC;N IS PROVID$ 0WAY
( AN ANNUAL TAX CR$IT T IS CALCULAT$ Z
#AF@3P (! L1/ (! CORPOR,N'S3
  7A7 ACTIVE BUSI;S 9COME =! YE>2
  7B7 TAXA# 9COME =! YE> 7SUBJECT 6C]TA9
    ADJU/;TS72 &
                                      #F
             ,,IT-#GC;,R#F           A#B
  7C7 BUSI;S LIMIT =! YE> 7: IS G5],Y
    4#BJJ1JJJ74
  ,! CORPOR,N M/ 2 A ,,CCPC "?\T ! YE>
6QUALIFY =! SMALL BUSI;S DEDUC;N = T
YE>4
  ,! SPECIAL L[ RATE ( TAX PROVID$ 0!
SMALL BUSI;S DEDUC;N RECOGNIZES !
SPECIAL F9ANC+ DI6ICULTIES & HI<] CO/ (
CAPITAL FAC$ 0SMALL BUSI;SES & IS 9T5D$
6PROVIDE ^! CORPOR,NS ) M AF-TAX 9COME =
RE9VE/;T & EXPAN.N4 ,Z ! SMALL BUSI;S
DEDUC;N IS 9T5D$ 6B5EFIT ONLY SMALL
CORPOR,NS1 A L>GE CORPOR,N'S A3ESS 6!
DEDUC;N IS RE/RICT$ ON ! BASIS ( XS
TAXA# CAPITAL EMPLOY$ 9 ,CANADA4
  ,? BULLET9 AL 4CUSSES ! IMPACT (!
SMALL BUSI;S DEDUC;N ON ! A3EL]AT$ TAX
REDUC;N = ,,CCPC'S & ON ANY G5]AL TAX
REDUC;N CLAIM$ 0A ,,CCPC4




                                      #G
          ,4CUS.N & ,9T]PRET,N       B#B
              ,G5]AL ,-;TS
    
#A4 ,SUBSEC;N #ABE7#A7 PROVIDES A
  REDUC;N 7! 8SMALL BUSI;S DEDUC;N07 F
  ,"P ;,I TAX O!RWISE PAYA# =A TAX,N YE>
  0A CORPOR,N T WAS1 "?\T ! TAX,N YE>1 A
  ,,CCPC4 8,CANADIAN-3TROLL$ PRIVATE
  CORPOR,N0 IS DEF9$ 9 SUBSEC;N
  #ABE7#G74 ,SEE AL ! CURR5T V].N (
  ,,IT-#DEH1 ,CANADIAN-,3TROLL$ ,PRIVATE
  ,CORPOR,N4
#B4 ,! SMALL BUSI;S DEDUC;N1 =A "PICUL>
  TAX,N YE>1 IS EQUAL 6#AF@3P (! L1/ (
  7A71 7B71 & 7C73
  7A7 ! TOTAL ( EA* AM.T (! CORPOR,N'S
    9COME =! YE> F AN ACTIVE BUSI;S
    C>RI$ ON 0X 7O!R ?AN Z A MEMB] (A
    "PN]%IP7 9 ,CANADA 7SEE P>AGRAPHS
    #C-AJ72 &
    --! CORPOR,N'S 8SPECIFI$ "PN]%IP
      9COME0 =! YE> 7SEE P>AGRAPH #BJ72
    ,M9US
    --! TOTAL ( EA* AM.T (! CORPOR,N'S
      LOSS =! YE> F AN ACTIVE         #H
             ,,IT-#GC;,R#F           C#B
      BUSI;S C>RI$ ON 0X 7O!R ?AN Z A
      MEMB] (A "PN]%IP7 9 ,CANADA2 &
    --! CORPOR,N'S 8SPECIFI$ "PN]%IP
      LOSS0 =! YE> 7SEE P>AGRAPH #BA72
  7B7 ! CORPOR,N'S TAXA# 9COME =! YE>
    M9US ANY POR;N "!( EXEMPT F TAX "U
    ,"P ;,I 2C ( AN ,ACT ( ,P>LIA;T &
    C]TA9 AM.TS P]TA9+ 6=EIGN TAX CR$ITS
    =! YE> 7SEE P>AGRAPH #BB72 &
  7C7 ! CORPOR,N'S BUSI;S LIMIT =! YE>
    7SEE P>AGRAPH #BC74
  
     ,9COME ,F ,AN ,ACTIVE ,BUSI;S
    ,C>RI$ ,ON ,9 ,CANADA--,P>AGRAPH
              #ABE7#A77,A7
            ,ACTIVE ,BUSI;S
    
#C4 ,! T]M 8ACTIVE BUSI;S C>RI$ ON 0A
  CORPOR,N0 IS DEF9$ 9 SUBSEC;N #ABE7#G7
  Z ANY BUSI;S C>RI$ ON 0A CORPOR,N O!R
  ?AN A 8SPECIFI$ 9VE/;T BUSI;S0 7SEE
  P>AGRAPH #AA7 &A 8P]SONAL S]VICES
  BUSI;S0 7SEE P>AGRAPH #AH7 & 9CLUDES
  AN ADV5TURE OR 3C]N 9 ! NATURE (    #I
             ,,IT-#GC;,R#F           D#B
  TRADE 7SEE ! CURR5T V].N ( ,,IT-#DEI1
  ,ADV5TURE OR ,3C]N 9 ! ,NATURE (
  ,TRADE74

      ,9COME ,F AN ,ACTIVE ,BUSI;S
    
#D4 8,9COME (! CORPOR,N =! YE> F AN
  ACTIVE BUSI;S10 Z DEF9$ 9 SUBSEC;N
  #ABE7#G71 M1NS ! CORPOR,N'S 9COME =!
  YE> F AN ACTIVE BUSI;S C>RI$ ON 0X1
  9CLUD+ ANY 9COME =! YE> P]TA9+ 6OR
  9CID5T 6T BUSI;S 7SEE P>AGRAPHS #E &
  #F71 Z WELL Z AM.TS RCVD F A 8,,NISA
  ,FUND ,NUMB] #B10 T >E 9CLUD$ "U
  SUBSEC;N #AB7#AJ.B7 9 -PUT+ !
  CORPOR,N'S 9COME =! YE>4 8,,NISA ,FUND
  ,NUMB] #B10 Z DEF9$ 9 SUBSEC;N
  #BDH7#A71 M1NS ! "P (A TAXPAY]'S NET
  9COME /ABILIZ,N A3.T DESCRIB$ 9
  P>AGRAPH #H7#B77B7 (! ,F>M ,9COME
  ,PROTEC;N ,ACT4

  8,9COME (! CORPOR,N =! YE> F AN ACTIVE
  BUSI;S0 DOES N 9CLUDE ANY 9COME    #AJ
             ,,IT-#GC;,R#F           E#B
  =! YE> F A S\RCE 9 ,CANADA T IS A
  PROP]TY )9 ! M1N+ ASSIGN$ 0SUBSEC;N
  #ABI7#D74 ,T SUBSEC;N PROVIDES T
  89COME0 OR 8LOSS0 (A CORPOR,N =A TAX,N
  YE> F A S\RCE T IS A PROP]TY

  7A7 9CLUDES ! 9COME OR LOSS F A
    SPECIFI$ 9VE/;T BUSI;S 7SEE P>AGRAPH
    #AA7 C>RI$ ON 0! CORPOR,N 9 ,CANADA
    O!R ?AN 9COME OR LOSS F A S\RCE
    \TSIDE ,CANADA1
  7B7 B DOES N 9CLUDE ! 9COME OR LOSS F
    ANY PROP]TY
    --T IS 9CID5T 6OR P]TA9S 6AN ACTIVE
      BUSI;S C>RI$ ON 0! CORPOR,N 7SEE
      P>AGRAPHS #E & #F71 OR
--------------------------------------#C
    --T IS US$ OR HELD PR9CIP,Y =!
      PURPOSE ( GA9+ OR PRODUC+ 9COME F
      AN ACTIVE BUSI;S C>RI$ ON 0!
      CORPOR,N 7SEE P>AGRAPHS #E & #F74
  ,IF ! ORIG9AL GA9 ON ! SALE ( R1L
  PROP]TY 0 CATEGORIZ$ 9 A PREVI\S YE> Z
  9COME F AN ACTIVE BUSI;S1 AM.TS    #AA
             ,,IT-#GC;,R#F           A#C
  9CLUD$ 9 9COME 9 SUBSEQU5T YE>S 9
  RESPECT (! R1LIZ,N (! MORTGAGE RES]VE
  PURSUANT 6SUBP>AGRAPH #AB7#A77E77;II71
  >E 3SID]$ 6BE 9COME F AN ACTIVE
  BUSI;S4 ,? AL APPLIES 6ANY MORTGAGE
  9T]E/ RCVD P]TA9+ 6S* MORTGAGE4

  ,Z 4CUSS$ 9 P>AGRAPH #G1 SUBSEC;N
  #ABI7#F7 PROVIDES AN EXCEP;N 6^! G5]AL
  RULES = C]TA9 AM.TS RCVD OR RECEIVA# F
  ASSOCIAT$ CORPOR,NS4
#E4 ,9COME (A CORPOR,N T 8P]TA9S TO0 OR
  IS 89CID5T TO0 ! 9COME (! CORPOR,N F
  AN ACTIVE BUSI;S IS REF]R$ 6IN !
  DEF9I;N ( 89COME (! CORPOR,N =! YE> F
  AN ACTIVE BUSI;S0 9 SUBSEC;N #ABE7#G7
  B ^? T]MS >E N DEF9$ 9 ! ,ACT4

  ,9 EXAM9+ ! ORD9>Y DIC;N>Y M1N+ ( ^!
  ^WS1 89CID5T TO0 G5],Y 9CLUDES ANY?+ T
  IS 3NECT$ ) OR RELAT$ 6ANO!R ?+1 ?\< N
  9SEP>ABLY1 OR "S?+ T IS DEP5D5T ON OR
  SUBORD9ATE 6ANO!R M IMPORTANT ?+4
  8,P]TA9S TO0 G5],Y 9CLUDES ANY?+   #AB
             ,,IT-#GC;,R#F           B#C
  T =MS "P (1 2L;GS 6OR RELATES 6ANO!R
  ?+4

  ,! C\RTS H F.D T1 9 9T]PRET+ ! M1N+ (
  8P]TA9S TO0 OR 89CID5T TO0 9 3TEXT1 "!
  HAS 6BE A F9ANCIAL REL,N%IP ( DEP5D;E
  ( "S SUB/.E 2T ! PROP]TY 9 "Q &!
  ACTIVE BUSI;S 2F ! PROP]TY IS 3SID]$
  6BE 9CID5T 6OR 6P]TA9 6! ACTIVE BUSI;S
  C>RI$ ON 0! CORPOR,N4 ,9 A4I;N1 !
  OP],NS (! BUSI;S H 6H "S RELI.E ON !
  PROP]TY S* T ! PROP]TY IS A BACK-UP
  ASSET T CD SUPPORT ! BUSI;S OP],NS EI
  ON A REGUL> BASIS OR F "T 6"T4

  ,IF1 = EXAMPLE1 A CORPOR,N C>RY+ ON AN
  ACTIVE BUSI;S HOLDS T]M DEPOSITS T >E
  N US$ OR 3NECT$ 6XS BUSI;S OP],NS1 !
  T]M DEPOSITS >E N PROP]TY T IS 9CID5T
  6OR P]TA9S 6AN ACTIVE BUSI;S C>RI$ ON
  0! CORPOR,N1 NOR >E ! T]M DEPOSITS US$
  OR HELD PR9CIP,Y =! PURPOSE ( GA9+ OR
  PRODUC+ 9COME F AN ACTIVE BUSI;S 0!
  CORPOR,N4 ,ACLY1 A DET]M9,N IS     #AC
             ,,IT-#GC;,R#F           C#C
  REQUIR$ ( :E!R ! S\RCE ( 9COME 7E4G41
  T]M DEPOSITS7 IS A SEP>A# ACTIV;Y1 A"P
  F ! CORPOR,N'S MA9 BUSI;S ACTIVITIES4

  ,! C\RTS H HELD T :5 A CORPOR,N DERIV$
  9COME F AN ACTIV;Y T 0 9SEP>A# F XS
  NORMAL ACTIVE BUSI;S1 S* 9COME 0
  PROP]LY CLASSIFI$ Z ACTIVE BUSI;S
  9COME4 ,IF ! 9COME IS "P (! NORMAL
  BUSI;S ACTIV;Y (! CORPOR,N1 & X IS
  9EXTRICABLY L9K$ ) AN ACTIVE BUSI;S1 X
  IS 3SID]$ ACTIVE BUSI;S 9COME4 ,=
  EXAMPLE1 9 ! #AIHA CASE ( ,SUPREME
  ,!ATRES ,LTD4 V4 ,! ,QUE51 ,7#AIHA7'
  ,,CTC #AIJ1 #HA ,,DTC #EACF1 X 0 HELD
  0! ,F$]AL ,C\RT--,TRIAL ,DIVI.N T
  R5TAL 9COME F HIR+ \ ! "P (A BUILD+ T
  0 A MO;N PICTURE !ATRE AUDITORIUM
  3/ITUT$ ACTIVE BUSI;S 9COME DERIV$ F !
  -PANY'S NORMAL BUSI;S ACTIV;Y ( OP]AT+
  MO;N PICTURE !ATRES1 :ILE ! R5TAL
  9COME F HIR+ \ A POR;N (A P>K+ LOT 0
  N4
                                     #AD
             ,,IT-#GC;,R#F           D#C
#F4 ,Z 9DICAT$ 9 P>AGRAPH #D1 =! PURPOSE
  (! SMALL BUSI;S DEDUC;N1 9COME F
  PROP]TY DOES N 9CLUDE 9COME 8F ANY
  PROP]TY T IS 9CID5T 6OR P]TA9S 6AN
  ACTIVE BUSI;S C>RI$ ON 0! CORPOR,N0 OR
  8F ANY PROP]TY T IS US$ OR HELD
  PR9CIP,Y =! PURPOSE ( GA9+ OR PRODUC+
  9COME F AN ACTIVE BUSI;S C>RI$ ON 0!
  CORPOR,N40 ,9COME F PROP]TY T IS
  EMPLOY$ OR RISK$ 9 A CORPOR,N'S BUSI;S
  OP],NS IS 3SID]$ 6BE ACTIVE BUSI;S
  9COME4 ,? M/ 2 4T+UI%$ F 9COME F
  PROP]TY1 : IS N 3NECT$ 6OR IS N NEC
  6SU/A9 A CORPOR,N'S BUSI;S OP],NS4 ,X
  IS A "Q ( FACT :E!R A PROP]TY IS US$
  PR9CIP,Y 9 AN ACTIVE BUSI;S4 ,FACTORS
  6BE 3SID]$ 9 DET]M9+ :E!R A PROP]TY IS
  US$ 9 AN ACTIVE BUSI;S 9CLUDE ! ACTUAL
  USE 6: ! ASSET IS PUT 9 ! C\RSE (!
  BUSI;S1 ! NATURE (! BUSI;S 9VOLV$ &!
  PRACTICE 9 ! "PICUL> 9DU/RY4 ,! ISSUE
  ( :E!R PROP]TY 0 US$ OR HELD 0A
  CORPOR,N 9 ! C\RSE ( C>RY+ ON A BUSI;S
  0 3SID]$ 0! ,SUPREME ,C\RT (       #AE
             ,,IT-#GC;,R#F           E#C
  ,CANADA 9 ,5SITE ,LIMIT$ V4 ,H]
  ,MAJE/Y ! ,QUE51 ,7#AIHF7' #B ,,CTC
  #DEI1 #HF ,,DTC #FEBA4 ,! C\RT HELD T
  ! HOLD+ OR US+ ( PROP]TY M/ 2 L9K$ 6"S
  DEF9ITE OBLIG,N OR LIABIL;Y (! BUSI;S
  & T A BUSI;S PURPOSE TE/ =! USE (!
  PROP]TY 0 N SU6ICI5T4 ,! PROP]TY _H
  6BE EMPLOY$ & RISK$ 9 ! BUSI;S 6FULFIL
  A REQUIRE;T : _H 6BE MET 9 ORD] 6D
  BUSI;S4 ,9 ? 3TEXT1 RISK M1NS M ?AN A
  REMOTE RISK4 ,IF ! )DRAWAL (! PROP]TY
  WD H A DECID$LY DE/ABILIZ+ E6ECT ON !
  CORPORATE OP],NS1 ! PROP]TY WD G5],Y 2
  3SID]$ 6BE US$ 9 ! C\RSE ( C>RY+ ON A
  BUSI;S4 ,9 O!R ^WS1 ! PROP]TY HAS 6BE
  AN 9TEGRAL "P (! F9ANC+ (! BUSI;S OR
  NEC 6! OV]ALL BUSI;S OP],NS 9 ORD] =
  9COME F ! PROP]TY 6BE "P (! 89COME (!
  CORPOR,N ''' F AN ACTIVE BUSI;S40

  ,= EXAMPLE1 AL? A MORTGAGE RECEIVA# IS
  AN ASSET ^: EXI/;E MAY 2 RELEVANT 6!
  EQU;Y (A CORPOR,N1 X IS N G5],Y AN
  ASSET US$ 9 AN ACTIVE BUSI;S 2C    #AF
             ,,IT-#GC;,R#F           F#C
  ! FUNDS TI$ UP 9 ! MORTGAGE >E N
  AVAILA# =! ACTIVE BUSI;S USE (A
  CORPOR,N4 ,H["E1 IF ! CORPOR,N CD
  E/ABLI% T ! MORTGAGES >E EMPLOY$ &
  RISK$ 9 ! BUSI;S S* T ! MORTGAGES >E
  9EXTRICABLY TI$ 6OR VIT,Y 3NECT$ )!
  BUSI;S1 !Y CD 2 3SID]$ 6BE US$ 9 AN
  ACTIVE BUSI;S C>RI$ ON 0! CORPOR,N4
#G4 ,A CORPOR,N MAY DERIVE 9COME F HOLD+
  PROP]TY 9 ,CANADA 7E4G41 9COME 9 ! =M
  ( R1L E/ATE R5TALS1 9T]E/1 OR
  ROYALTIES74 ,IF S* 9COME IS RCVD OR
  RECEIVA# F AN ASSOCIAT$ -PANY &! AM.T
  IS OR MAY 2 DEDUCTI# 9 DET]M9+ !
  ASSOCIAT$ -PANY'S 9COME F AN ACTIVE
  BUSI;S C>RI$ ON 0X 9 ,CANADA1 !N
  P>AGRAPH #ABI7#F77B7 DEEMS ! 9COME 9 !
  RECIPI5T'S H&S 6BE 9COME F AN ACTIVE
  BUSI;S C>RI$ ON 0X 9 ,CANADA4
--------------------------------------#D
  ,IF SUBSEC;N #ABI7#F7 DEEMS R5TAL
  9COME 6BE ACTIVE BUSI;S 9COME &
  CAPITAL CO/ ALL[.E ON ! R5T$ BUILD+ 0
  DEDUCT$ 9 CALCULAT+ ACTIVE         #AG
             ,,IT-#GC;,R#F           A#D
  BUSI;S 9COME1 ANY RECAPTURE ( CAPITAL
  CO/ ALL[.E ON ! 4POSI;N (! BUILD+ WD
  AL 2 3SID]$ 6BE ACTIVE BUSI;S 9COME4
#H4 ,IF A CORPOR,N IS 9CORPORAT$ 6E>N
  9COME 0DO+ BUSI;S1 "! IS A G5]AL
  PRESUMP;N T PR(ITS >IS+ F XS
  ACTIVITIES >E DERIV$ F A BUSI;S 7OR F
  SEP>ATE BUSI;SES Z 4CUSS$ 9 ! CURR5T
  V].N ( ,,IT-#BJF1 ,SEP>ATE ,BUSI;SES74
  ,?US1 F ! "T T ! ACTIVITIES 3TEMPLAT$
  -M;E 7SEE ! CURR5T V].N ( ,,IT-#CFD1
  ,-M;E;T ( ,BUSI;S ,OP],NS7 UNTIL !Y
  P]MAN5TLY C1SE1 MO/ CORPOR,NS C>RY ON
  OR W H C>RI$ ON "O OR M BUSI;SES4
  ,H["E1 9 "S CIRCUM/.ES1 A CORPOR,N'S
  5TIRE PR(ITS C 2 "*IZ$ Z 9COME F
  PROP]TY1 Z MI<T 2 ! CASE ": ! CORPOR,N
  IS =M$ =! SOLE PURPOSE ( HOLD+ %>ES (A
  SECOND CORPOR,N OR HOLD+ A PROP]TY 6BE
  R5T$ ) LIMIT$ L&"L RESPONSIBILITIES4
  ,X IS1 ( C\RSE1 Q POSSI# T A CORPOR,N
  W E>N 9COME F PROP]TY Z WELL Z 9COME F

                                     #AH
             ,,IT-#GC;,R#F           B#D
  A BUSI;S C>RI$ ON1 IF S* PROP]TY 9COME
  IS N 9COME F ANO!R SEP>ATE BUSI;S4

           ,CESS,N (A ,BUSI;S
    
#I4 ,9COME RELAT$ 6A BUSI;S T >ISES AF
  CESS,N ( T BUSI;S _C QUALIFY Z 9COME F
  A BUSI;S EXCEPT :5 X >ISES F3
  7A7 BAD DEBT RECOV]IES2
  7B7 ! RECAPTURE ( V>I\S RES]VES2
  7C7 ! SALE (! 9V5TORY (! BUSI;S2
  7D7 ! 4POSI;N ( ELIGI# CAPITAL PROP]TY
    (! BUSI;S &! 9COME IS ! AM.T (!
    EXCESS DESCRIB$ 9 SUBSEC;N #AD7#A72
  7E7 ! RECAPTURE ( CAPITAL CO/ ALL[.E2
    OR
  7F7 A SIMIL> ITEM 6^? DESCRIB$ 9 ANY (
    7A7 TO 7E7 ABV4

  ,9COME T DOES QUALIFY Z 9COME F A
  BUSI;S 2C X >ISES F A S\RCE DESCRIB$ 9
  7A7 TO 7F7 ABV W 2 3SID]$ 6BE 9COME F
  ! SAME CATEGORY ( BUSI;S Z T 6: !
  S\RCE ORIG9,Y RELAT$4 ,= 7E7       #AI
             ,,IT-#GC;,R#F           C#D
  ABV1 H["E1 ? DOES N APPLY 6SITU,NS 9 :
  ! DEPRECIA# PROP]TY IS SUBSEQU5TLY
  TR1T$ Z A R5TAL PROP]TY & CAPITAL CO/
  ALL[.E IS CLAIM$ AG/ ! R5TAL 9COME
  S9CE ! R5TAL PROP]TY WD GIVE RISE
  69COME F PROP]TY T IS N 9COME F AN
  ACTIVE BUSI;S4 ,IF ! PROP]TY 0 ONLY
  R5T$ OR L1S$ =A %ORT "T DUR+ : X 0
  LI/$ = SALE & NO CAPITAL CO/ ALL[.E 0
  CLAIM$ AG/ ! R5TAL OR L1SE 9COME1 !
  9COME WD / 2 3SID]$ 6BE 9COME F ! SAME
  CATEGORY ( BUSI;S 2F ! R5TAL OR L1SE4
  ,X IS A "Q ( FACT :E!R OR N A CORPOR,N
  HAS C1S$ 6C>RY ON A BUSI;S4

  ,A TEMPOR>Y P]IOD ( 9ACTIV;Y DOES N
  NECESS>ILY M1N T A CORPOR,N HAS C1S$
  7& SUBSEQU5TLY RECOMM;ED7 6C>RY ON A
  BUSI;S4 ,= EXAMPLE1 ! NATURE (A R1L
  E/ATE DEVELOP;T BUSI;S IS S* T NO R1L
  E/ATE MAY 2 HELD AT C]TA9 "TS OR R1L
  E/ATE T IS HELD MAY N 2 ACTIVELY
  DEVELOP$ =A SIGNIFICANT P]IOD ( "T4
  ,UN.S X IS EVID5T T ! CORPOR,N     #BJ
             ,,IT-#GC;,R#F           D#D
  DOES N 9T5D 6RECOMM;E XS DEVELOP;T
  ACTIVITIES1 X IS 3SID]$ 6BE C>RY+ ON
  BUSI;S "?\T ! DORMANT P]IOD4 ,9 ANY
  EV5T1 A CORPOR,N C1SES 6C>RY ON A
  BUSI;S 2F 7B N NECESS>ILY IMMLY 2F7 !
  "T :5 X3
  --COMM;ES 64TRIBUTE XS ASSETS 6XS
    %>EHOLD]S 9 ! C\RSE ( W9D+ UP !
    CORPOR,N2 OR
  --SELLS OR O!RWISE 4POSES (! BUSI;S4
  
     ,M1N+ ( 8,C>RI$ ,ON 9 ,CANADA0
    
#AJ4 ,:E!R OR N A "PICUL> BUSI;S IS
  C>RI$ ON 9 :OLE OR 9 "P 9 ,CANADA IS A
  "Q ( FACT4 ,H["E1 Z A G5]AL RULE1 A
  BUSI;S T 9VOLVES ! SALE OR L1S+ ( GDS
  IS USU,Y C>RI$ ON 9 ! C.TRY ": !
  CORPOR,N IS RESID5T1 UN.S ! BUSI;S 7OR
  A "P ( X7 IS 3DUCT$ 0A VIRTU,Y
  AUTONOM\S BRAN* OP],N \TSIDE ,CANADA4
  ,:5 A CORPOR,N'S BUSI;S 9VOLVES !
  R5D]+ ( S]VICES1 T BUSI;S IS C>RI$ ON
  9 ,CANADA ONLY 6! EXT5T T          #BA
             ,,IT-#GC;,R#F           E#D
  S]VICES >E R5D]$ 9 ,CANADA1
  NECESSITAT+ AN APPOR;N;T ( NET BUSI;S
  9COME ON A R1SONA# BASIS4 ,9COME
  DERIV$ F PROP]TY1 ANCILL>Y 6!
  ACTIVITIES 9VOLV$ 9 C>RY+ ON A BUSI;S1
  T IS CATEGORIZ$ Z 9COME F AN ACTIVE
  BUSI;S MAY AL H 6BE APPOR;N$ ON A
  R1SONA# BASIS HAV+ REG>D 6! PLACE ": !
  RELAT$ BUSI;S IS C>RI$ ON4

       ,SPECIFI$ ,9VE/;T ,BUSI;S
    
#AA4 ,A 8SPECIFI$ 9VE/;T BUSI;S0 C>RI$
  ON 0A CORPOR,N 9 A TAX,N YE> IS DEF9$
  9 SUBSEC;N #ABE7#G7 6BE A BUSI;S !
  PR9CIPAL PURPOSE 7SEE P>AGRAPHS #AB
  6#AD7 ( : IS 6DERIVE 9COME F PROP]TY4
  ,S* 9COME 9CLUDES 9T]E/1 DIVID5DS1
  R5TALS F R1L E/ATE 79CLUD+ SUBR5TALS7
  & ROYALTIES4 ,SPECIFIC,Y EXCLUD$ F !
  DEF9I;N IS ANY BUSI;S C>RI$ ON 0A
  CR$IT UNION OR A BUSI;S ( L1S+ PROP]TY
  O!R ?AN R1L PROP]TY4 ,H["E1 ! BUSI;S
  (! CORPOR,N W G5],Y 2 3SID]$ 6BE   #BB
             ,,IT-#GC;,R#F           F#D
  AN ACTIVE BUSI;S R ?AN A SPECIFI$
  9VE/;T BUSI;S :5 EI3
  7A7 ! CORPOR,N EMPLOYS 9 ! BUSI;S "?\T
    ! TAX,N YE> M ?AN FIVE FULL-"T
    EMPLOYEES 7SEE P>AGRAPHS #AE 6#AG72
    OR
  7B7 AN ASSOCIAT$ CORPOR,N1 9 ! C\RSE (
    C>RY+ ON AN ACTIVE BUSI;S1 PROVIDES
    MANAG]IAL1 ADM9I/RATIVE1 F9ANCIAL1
    MA9T5.E OR O!R SIMIL> S]VICES 6!
    CORPOR,N 9 ! YE> & X IS R1SONA#
    6ASSUME T ! CORPOR,N WD H REQUIR$ M
    ?AN FIVE FULL-"T EMPLOYEES 9 XS
    BUSI;S IF ^? S]VICES _H N BE5
    PROVID$4
--------------------------------------#E
  ,! EXCEP;NS 9 7A7 & 7B7 ABV D N APPLY
  6A BUSI;S C>RI$ ON 0A PRESCRIB$ LAB\R-
  SPONSOR$ V5TURE CAPITAL CORPOR,N ": !
  PR9CIPAL PURPOSE (! BUSI;S IS 6DERIVE
  9COME F PROP]TY4 ,SEC;N #FGJA (!
  ,REGUL,NS 3TA9S ! M1N+ ( 8PRESCRIB$
  LAB\R-SPONSOR$ V5TURE CAPITAL
  CORPOR,N0 =! PURPOSES ( ? RULE 9   #BC
             ,,IT-#GC;,R#F           A#E
  ! DEF9I;N ( 8SPECIFI$ 9VE/;T BUSI;S0 9
  SUBSEC;N #ABE7#G74

  ,9VE/;T ACTIVITIES (A CORPOR,N _C
  3/ITUTE A 8SPECIFI$ 9VE/;T BUSI;S0 IF
  S* ACTIVITIES >E N
  --! MA9 BUSI;S (! CORPOR,N1 OR
  --A SEP>ATE BUSI;S (! CORPOR,N 7SEE !
    CURR5T V].N ( ,,IT-#BJF1 ,SEP>ATE
    ,BUSI;SES74
#AB4 8,PR9CIPAL PURPOSE0 IS N A DEF9$
  T]M 9 ! ,ACT =! PURPOSES (! DEF9I;N (
  8SPECIFI$ 9VE/;T BUSI;S0 9 SUBSEC;N
  #ABE7#G71 B X IS 3SID]$ 6BE ! MA9 OR
  *IEF OBJECTIVE = : ! BUSI;S IS C>RI$
  ON4
#AC4 ,A CORPOR,N T OP]ATES A BUSI;S MAY
  BUY R1L PROP]TY =! PURPOSE ( US+ !
  SITE 9 ! FUTURE Z A BUSI;S PREMISE4 ,9
  ! 9T]IM1 IF R5TAL 9COME IS DERIV$1 S*
  9COME WD PROBABLY 2 3SID]$ 6BE ACTIVE
  BUSI;S 9COME R ?AN 9COME F A SPECIFI$
  9VE/;T BUSI;S4 ,9 S* CASES1 X IS
  PRESUM$ T ! PR9CIPAL PURPOSE TE/   #BD
             ,,IT-#GC;,R#F           B#E
  REF]R$ 6IN ! DEF9I;N ( 8SPECIFI$
  9VE/;T BUSI;S0 9 SUBSEC;N #ABE7#G7 WD
  N 2 MET = Z L;G Z ! CORPOR,N'S
  PR9CIPAL PURPOSE 9 [N+ ! SITE IS N
  6DERIVE R5TAL 9COME F X4 ,A CORPOR,N T
  OP]ATES A HOTEL IS G5],Y 3SID]$ 6BE 9
  ! BUSI;S ( PROVID+ S]VICES & N 9 !
  BUSI;S ( R5T+ R1L PROP]TY4 ,ACLY1 !
  BUSI;S IS NORM,Y 3SID]$ 6BE AN ACTIVE
  BUSI;S R ?AN A SPECIFI$ 9VE/;T BUSI;S4
#AD4 ,! PR9CIPAL PURPOSE (A CORPOR,N'S
  BUSI;S M/ 2 DET]M9$ ANNU,Y AF ALL !
  FACTS RELAT+ 6T BUSI;S C>RI$ ON 0T
  CORPOR,N 9 T YE> H BE5 3SID]$ &
  ANALYZ$4 ,9CLUD$ 9 ? EVALU,N %D 2 S*
  ?+S Z3
  7A7 ! PURPOSE = : ! BUSI;S 0 ORIG9,Y
    -M;ED2
  7B7 ! HI/ORY & EVOLU;N ( XS OP],NS1
    9CLUD+ *ANGES 9 XS MODE ( OP],N &
    PURPOSE ( EXI/;E2 &
  7C7 ! MANN] 9 : ! BUSI;S IS 3DUCT$4
#AE4 ,! PHRASE 8! CORPOR,N EMPLOYS 9 !
  BUSI;S "?\T ! 7TAX,N7 YE> M ?AN    #BE
             ,,IT-#GC;,R#F           C#E
  FIVE FULL-"T EMPLOYEES0 IS 3SID]$ 6M1N
  T AN EMPLOY] HAS SIX OR M EMPLOYEES
  "W+ A FULL BUSI;S "D 7OR A FULL %IFT7
  ON EA* "W+ "D (! YE>1 SUBJECT 6NORMAL
  ABS;ES DUE 6ILL;S OR VAC,N4 ,EMPLOYEES
  "W+ "P-"T _C QUALIFY Z FULL-"T
  EMPLOYEES4 ,A "P-"T EMPLOYEE IS G5],Y
  A P]SON EMPLOY$ = IRREGUL> H\RS ( DUTY
  OR SPECIFIC 9T]MITT5T P]IODS1 OR BO?1
  DUR+ A "D1 WEEK1 MON?1 OR YE> & ^:
  S]VICES >E N REQUIR$ =! NORMAL "W "D1
  WEEK1 MON?1 OR YE>4 ,VACANCIES CAUS$
  0T]M9,NS T TEMPOR>ILY REDUCE ! /AFF
  6LESS ?AN SIX EMPLOYEES W NORM,Y N
  4QUALIFY ! CORPOR,N PROVID$ IMM AC;N
  IS TAK5 6RE/ORE ! /AFF 6NORMAL /R5G? &
  "! IS NO UNDUE DELAY 9 FILL+ ! VACANT
  POSI;NS4
#AF4 ,9 ! FOLL[+ SITU,NS1 EMPLOYEES (A
  CORPOR,N WD N 2 3SID]$ 6BE FULL-"T
  EMPLOYEES "?\T A TAX,N YE>3


                                     #BF
             ,,IT-#GC;,R#F           D#E
  7A7 ,MR4 ;,A IS EMPLOY$ TWO "DS A
    WEEK1 DOES ALL ! BOOKKEEP+1 B IS
    AVAILA# :5"E 8 S]VICES >E REQUIR$2
  7B7 ,MR4 ;,B'S ONLY ACTIV;Y IS 6ATT5D
    BO>D ( DIRECTORS MEET+S1 AL? HE IS
    ALW AVAILA# :5"E 8 S]VICES >E
    REQUIR$2 &
  7C7 A CORPOR,N EMPLOYS T5 EMPLOYEES
    FULL-"T = SIX MON?S 9 A TAX,N YE>
    &=! REMA9+ SIX MON?S EMPLOYS NO "O Z
    X IS 9ACTIVE4
#AG4 ,IF A CORPOR,N C>RIES ON A BUSI;S Z
  A MEMB] (A JO9T V5TURE1 EMPLOYEES "W+
  =! JO9T V5TURE >E ! EMPLOYEES ( XS
  MEMB]S COLLECTIVELY1 B N ( ANY ( !M
  9DIVIDU,Y4 ,9 O!R ^WS1 S* EMPLOYEES1
  IF FULL-"T1 _C 2 C.T$ Z ! FULL-"T
  EMPLOYEES (! CORPOR,N1 EI 9 :OLE OR 9
  PROPOR;N 6XS 9T]E/ 9 ! JO9T V5TURE4
  ,ONLY ^? P]SONS 7IF ANY7 :O >E EMPLOY$
  FULL-"T 9 ! BUSI;S DIRECTLY & SOLELY
  0! CORPOR,N C 2 C.T$ Z XS FULL-"T
  EMPLOYEES =! PURPOSE (! 8M ?AN FIVE
  FULL-"T EMPLOYEES0 EXCEP;N 9 !     #BG
             ,,IT-#GC;,R#F           E#E
  DEF9I;N ( 8SPECIFI$ 9VE/;T BUSI;S04 ,!
  SAME WD APPLY = O!R =MS ( CO-[N]%IP (A
  BUSI;S4 ,SEE ,L]RIC ,9VE/;TS ,CORP4 V4
  ,! ,QUE51 ,7#BJJA7' #B ,,CTC #HD1
  #BJJA ,,DTC #EAFI4 ,9 ! CASE (
  "PN]%IPS1 H["E1 SEE P>AGRAPH #BJ4

       ,P]SONAL ,S]VICES ,BUSI;S
    
#AH4 ,PURSUANT 6! DEF9I;N ( 8P]SONAL
  S]VICES BUSI;S0 9 SUBSEC;N #ABE7#G71 A
  CORPOR,N IS C>RY+ ON A 8P]SONAL
  S]VICES BUSI;S0 9 A TAX,N YE> IF X IS
  9 ! BUSI;S ( PROVID+ S]VICES &3
  7A7 AN 9DIVIDUAL :O P]=MS ! S]VICES
    PROVID$ 6ANO!R P]SON OR "PN]%IP 7!
    5T;Y7 ON 2HALF (! CORPOR,N 7REF]R$
    6Z AN 89CORPORAT$ EMPLOYEE07 WD1 IF
    X 7 N =! EXI/;E (! CORPOR,N1
    R1SONABLY 2 REG>D$ Z AN (FIC] OR
    EMPLOYEE (! 5T;Y 6: ! S]VICES 7
    PROVID$2
  7B7 ! 9CORPORAT$ EMPLOYEE OR ANY P]SON
    RELAT$ 6! 9CORPORAT$ EMPLOYEE    #BH
             ,,IT-#GC;,R#F           F#E
    IS A 8SPECIFI$ %>EHOLD]0 (! CORPOR,N
    7SEE 2L72
  7C7 ! CORPOR,N EMPLOYS 9 ! BUSI;S 9 !
    YE> 7SUBJECT 6! -;TS 9 P>AGRAPH #AE7
    FEW] ?AN SIX FULL-"T EMPLOYEES 7SEE
    P>AGRAPHS #AE 6#AG7 9CLUD+
    9CORPORAT$ EMPLOYEES & O!R
    EMPLOYEES2 &
  7D7 ! FEE =! S]VICES IS N RCVD OR
    RECEIVA# 0! CORPOR,N F A CORPOR,N )
    : X 0 ASSOCIAT$ 9 ! YE>4
--------------------------------------#F
  ,A P]SONAL S]VICES BUSI;S DOES N
  QUALIFY =! SMALL BUSI;S DEDUC;N & IS
  "!=E SUBJECT 6TAX AT FULL CORPORATE
  RATES4 ,9 A4I;N1 P>AGRAPH #AH7#A77P7
  LIMITS ! DEDUC;NS P]MITT$ 9 -PUT+ A
  CORPOR,N'S 9COME =A TAX,N YE> F A
  P]SONAL S]VICES BUSI;S4

  ,SUBJECT 6V>I\S DEEM+ PROVI.NS 9 !
  DEF9I;N ( 8SPECIFI$ %>EHOLD]0 9
  SUBSEC;N #BDH7#A71 A 8SPECIFI$
  %>EHOLD]0 (A CORPOR,N 9 A TAX,N    #BI
             ,,IT-#GC;,R#F           A#F
  YE> IS A TAXPAY] :O [NS DIRECTLY OR
  9DIRECTLY AT ANY "T 9 ! YE> N LESS ?AN
  #AJ@3P (! ISSU$ %>ES ( ANY CLASS (!
  CAPITAL /OCK (! CORPOR,N OR ( ANY O!R
  CORPOR,N T IS RELAT$ 6! CORPOR,N4
#AI4 ,! 3DI;N /IPULAT$ 9 P>AGRAPH #AH7A7
  IS N MET IF1 9 ! ABS;E (! CORPOR,N1 "!
  WD 2 NO -MON LAW MA/]-S]VANT REL,N%IP
  &! 9DIVIDUAL :O "UTAKES 6P]=M !
  S]VICES WD 2 VIEW$ Z A SELF-EMPLOY$
  9DIVIDUAL C>RY+ ON A BUSI;S4 ,!
  DET]M9,N ( :E!R AN 9CORPORAT$ EMPLOYEE
  WD O!RWISE 2 REG>D$ Z SELF-EMPLOY$ OR
  Z AN (FIC] OR EMPLOYEE (! 5T;Y 6: !
  S]VICES 7 PROVID$ IS A "Q ( FACT4 ,!
  FOLL[+ LI/ ( FACTORS1 AL? N EXHAU/IVE1
  >E 9DIC,NS ( EMPLOYEE /ATUS3
  7A7 ! 5T;Y 6: ! S]VICES >E PROVID$ HAS
    ! "R 63TROL ! AM.T1 ! NATURE &!
    DIREC;N (! "W 6BE D"O &! MANN] ( DO+
    X2
  7B7 ! PAY;T = "W IS 0! H\R1 WEEK OR
    MON?2
                                     #CJ
             ,,IT-#GC;,R#F           B#F
  7C7 PAY;T 0! 5T;Y (! "W]'S TRAVELL+ &
    O!R EXP5SES 9CID5TAL 6! PAY]'S
    BUSI;S2
  7D7 A REQUIRE;T T A "W] M/ "W SPECIFI$
    H\RS2
  7E7 ! "W] PROVIDES S]VICES = ONLY "O
    PAY]2 &
  7F7 ! 5T;Y 6: ! S]VICES >E PROVID$
    FURNI%ES ! TOOLS1 MAT]IALS &
    FACILITIES 6! "W]4
  
       ,SPECIFI$ ,"PN]%IP ,9COME
    
#BJ4 ,Z NOT$ 9 P>AGRAPH #B1 "O (! AM.TS
  T 5T]S 96! CALCUL,N (A CORPOR,N'S
  SMALL BUSI;S DEDUC;N IS XS 8SPECIFI$
  "PN]%IP 9COME0 7IF ANY7 =! YE>4 ,? T]M
  IS DEF9$ 9 SUBSEC;N #ABE7#G74 ,A
  CORPOR,N'S SPECIFI$ "PN]%IP 9COME IS !
  A7REGATE ( TWO -PON5TS1 : >E ID5TIFI$
  Z V>IA#S ;,A & ;,B4

  ,9 G5]AL T]MS1 V>IA# ;,A REPRES5TS !
  CORPOR,N'S ELIGI# %>E ( 9COME F    #CA
             ,,IT-#GC;,R#F           C#F
  "PN]%IPS F ACTIVE BUSI;SES C>RI$ ON 9
  ,CANADA4

  ,M PRECISELY1 V>IA# ;,A IS ! .TOTAL (
  SEP>ATE AM.TS1 EA* ( : IS AN AM.T )
  RESPECT 6A "PICUL> "PN]%IP ( : !
  CORPOR,N 0 A MEMB] 9 ! YE>4 ,) RESPECT
  6EA* "PN]%IP1 ? AM.T IS ! LESS] ( TWO
  AM.TS3
  7;I7 ,! F/ AM.T IS ! .TOTAL ( SEP>ATE
    AM.TS1 EA* ( : IS AN AM.T 7IF
    POSITIVE7 ) RESPECT 6A "PICUL>
    ACTIVE BUSI;S : ! CORPOR,N C>RI$ ON
    9 ,CANADA Z A MEMB] (! "PN]%IP4 ,)
    RESPECT 6EA* BUSI;S1 ? AM.T IS EQUAL
    6! CORPOR,N'S %>E (! 9COME 7IF ANY7
    (! "PN]%IP F ! BUSI;S =! FISCAL
    P]IOD 7OR FISCAL P]IODS7 5D+ 9 ! YE>
    .PLUS ANY AM.T 9CLUD$ 9 ! CORPOR,N'S
    9COME =! YE> F ! BUSI;S 2C (
    SUBSEC;N #CD.B7#E7 .M9US ALL AM.TS
    DEDUCT$ AT ! "PN] LEVEL 9 -PUT+ !
    CORPOR,N'S 9COME =! YE> F ! BUSI;S
                                     #CB
             ,,IT-#GC;,R#F           D#F
    7O!R ?AN AM.TS DEDUCT$ 9 -PUT+ !
    9COME (! "PN]%IP F ! BUSI;S74
  7;II7 ,! SECOND AM.T ) RESPECT 6EA*
    "PN]%IP IS DET]M9$ 0.DIVID+ !
    CORPOR,N'S %>E ( ALL ! AM.TS ( 9COME
    (! "PN]%IP F ACTIVE BUSI;SES C>RI$
    ON 9 ,CANADA = FISCAL P]IODS 5D+ 9 !
    YE> .0! TOTAL ( ALL S* AM.TS ( 9COME
    (! "PN]%IP = S* FISCAL P]IODS1 &
    .MULTIPLY+ ! RESULT 04#BJJ1JJJ 7OR A
    PROPOR;NATELY SMALL] AM.T :5 ! NUMB]
    ( "DS 9 ANY S* FISCAL P]IOD IS LESS
    ?AN #CFE74
  ,! SECOND -PON5T1 V>IA# ;,B1 (A
  CORPOR,N'S SPECIFI$ "PN]%IP 9COME IS
  AN A4I;NAL AM.T 65SURE T ANY LOSSES (!
  CORPOR,N =! YE> F ACTIVE BUSI;SES
  C>RI$ ON 0X 9 ,CANADA >E (FSET F/ AG/
  BUSI;S 9COME T IS N ELIGI# =! SMALL
  BUSI;S DEDUC;N 2F REDUC+ ! 9COME T WD
  O!RWISE QUALIFY =! SMALL BUSI;S
  DEDUC;N4

                                     #CC
             ,,IT-#GC;,R#F           E#F
  ,V>IA# ;,B IS ! LESS] ( TWO AM.TS3
  7;I7 ! .TOTAL ( ALL AM.TS EA* ( : IS !
    CORPOR,N'S LOSS =! YE> F AN ACTIVE
    BUSI;S C>RI$ ON 0X 7O!R ?AN Z A
    MEMB] (A "PN]%IP7 9 ,CANADA .PLUS !
    CORPOR,N'S 8SPECIFI$ "PN]%IP LOSS0
    =! YE> 7SEE P>AGRAPH #BA72 &
  7;II7 ! .TOTAL ( ALL AM.TS EA* ( : IS
    ANY POSITIVE AM.T =! YE> T RESULTS
    :5 AM.T 7;II7 = V>IA# ;,A ABV )
    RESPECT 6ANY "PN]%IP ( : ! CORPOR,N
    0 A MEMB] 9 ! YE> IS SUBTRACT$ F
    AM.T 7;I7 = V>IA# ;,A ) RESPECT 6T
    "PN]%IP4
  ,V>IA# ;,B IS RELEVANT ONLY IF !
  CORPOR,N HAS BO? LOSSES =! YE> F AN
  ACTIVE BUSI;S C>RI$ ON 0X 9 ,CANADA
  7:E!R Z A MEMB] (A "PN]%IP OR O!RWISE7
  & 9COME =! YE> F AN ACTIVE BUSI;S
  C>RI$ ON 0X 9 ,CANADA Z A MEMB] (A
  "PN]%IP4

  ,= PURPOSES ( DET]M9+ :E!R A CORPOR,N
  HAS C>RI$ ON AN ACTIVE BUSI;S Z    #CD
             ,,IT-#GC;,R#F           F#F
  A MEMB] (A "PN]%IP1 Z REF]R$ 6IN !
  SUBSEC;N #ABE7#G7 DEF9I;NS ( 8SPECIFI$
  "PN]%IP 9COME0 & 8SPECIFI$ "PN]%IP
  LOSS0 7SEE P>AGRAPH #BA71 ! FOLL[+
  RULES %D 2 TAK5 963SID],N3
  --! SUBSEC;N #ABE7#G7 DEF9I;N (
    8ACTIVE BUSI;S C>RI$ ON 0A CORPOR,N0
    7SEE P>AGRAPH #C72
  --! SUBSEC;N #ABE7#G7 DEF9I;N ( 89COME
    (! CORPOR,N =! YE> F AN ACTIVE
    BUSI;S0 7SEE P>AGRAPHS #D 6#F72
--------------------------------------#G
  --! M1N+1 9 SUBSEC;N #ABI7#D71 (
    89COME0 OR 8LOSS0 (A CORPOR,N =A
    TAX,N YE> F A S\RCE T IS PROP]TY
    7SEE P>AGRAPHS #D 6#F72 &
  --! SUBSEC;N #ABE7#G7 DEF9I;N (
    8SPECIFI$ 9VE/;T BUSI;S0 7SEE
    P>AGRAPHS #AA 6#AE & P>AGRAPH #AG7
    &! EXCLU.N (A BUSI;S F T DEF9I;N IF
    "! >E M ?AN FIVE FULL-"T EMPLOYEES
    "?\T ! YE> 7Z 4CUSS$ 9 P>AGRAPHS
    #AA1 #AE & #AG74
                                     #CE
             ,,IT-#GC;,R#F           A#G
  ,A BUSI;S C>RI$ ON 0A CORPOR,N Z A
  MEMB] (A "PN]%IP IS N A 8SPECIFI$
  9VE/;T BUSI;S0 IF ! "PN]%IP EMPLOYS M
  ?AN FIVE FULL-"T EMPLOYEES4 ,9 O!R
  ^WS1 ! CORPOR,N'S %>E ( 9COME F !
  BUSI;S C 2 9CLUD$ 9 ! CALCUL,N ( XS
  8SPECIFI$ "PN]%IP 9COME04

        ,SPECIFI$ ,"PN]%IP ,LOSS
    
#BA4 ,IF A CORPOR,N HAS A 8SPECIFI$
  "PN]%IP LOSS0 =A TAX,N YE>1 X IS US$ 9
  ! CALCUL,NS 9 P>AGRAPHS #B & #BJ4 ,!
  T]M 8SPECIFI$ "PN]%IP LOSS0 IS DEF9$ 9
  SUBSEC;N #ABE7#G74 ,A CORPOR,N'S
  SPECIFI$ "PN]%IP LOSS 3SI/S (! FOLL[+3
  --! CORPOR,N'S %>E ( ALL ! LOSSES F
    "PN]%IPS ( : ! CORPOR,N 0 A MEMB] 9
    ! YE>1 = FISCAL P]IODS 5D+ 9 ! YE>1
    F ACTIVE BUSI;SES C>RI$ ON 9 ,CANADA
    0! CORPOR,N Z A "PN]%IP MEMB]2
  PLUS
  --! TOTAL ( ALL AM.TS EA* ( : IS ANY
    POSITIVE AM.T-) RESPECT ANY      #CF
             ,,IT-#GC;,R#F           B#G
    "PICUL> BUSI;S C>RI$ ON 0! CORPOR,N
    9 ,CANADA Z A MEMB] (A "PN]%IP-T
    RESULTS :5 ! AM.TS DEDUCT$ AT ! "PN]
    LEVEL 9 -PUT+ ! CORPOR,N'S 9COME =!
    YE> F T "PICUL> BUSI;S 7O!R ?AN ANY
    AM.T DEDUCT$ 9 -PUT+ ! 9COME (A
    "PN]%IP7 >E REDUC$ 0! CORPOR,N'S %>E
    (! 9COME F T BUSI;S =! FISCAL P]IOD
    OR P]IODS 5D+ 9 ! YE> & 0ANY AM.T
    9CLUD$ 9 ! CORPOR,N'S 9COME =! YE> F
    T BUSI;S 2C ( SUBSEC;N #CD.B7#E74
  
    ,TAXA# ,9COME ,LIMIT--,P>AGRAPH
              #ABE7#A77B7
    
#BB4 ,9 -PUT+ ! SMALL BUSI;S DEDUC;N (A
  ,,CCPC1 P>AGRAPH #ABE7#A77B7 REQUIRES
  ! DET]M9,N (! CORPOR,N'S TAXA# 9COME
  =! TAX,N YE> 9 EXCESS (! TOTAL (3
  --#AJ OV] #C (! CORPOR,N'S =EIGN TAX
    CR$IT DEDUCTI# "U SUBSEC;N #ABF7#A7
    =! YE> )\T REF];E 6SEC;NS #ABC.C &
    #ABC.D2
                                     #CG
             ,,IT-#GC;,R#F           C#G
  --#AJ OV] #D (! CORPOR,N'S =EIGN TAX
    CR$IT DEDUCTI# "U SUBSEC;N #ABF7#B7
    =! YE> )\T REF];E 6SEC;N #ABC.D2 &
  --ANY POR;N (! CORPOR,N'S TAXA# 9COME
    =! YE> T IS EXEMPT F TAX "U ,"P ;,I
    2C ( AN ,ACT ( ,P>LIA;T4
  ,! AM.TS DEDUCT$ F ! CORPOR,N'S TAXA#
  9COME REPRES5T 9COME ON : NO ,CANADIAN
  9COME TAX 0 PD 2C ! 9COME IS EXEMPT F
  TAX OR 2C (! =EIGN TAX CR$IT4

       ,BUSI;S ,LIMIT--,P>AGRAPH
              #ABE7#A77C7
             ,AM.T ( ,LIMIT
    
#BC4 ,G5],Y1 "U SUBSEC;N #ABE7#B71 !
  BUSI;S LIMIT =A ,,CCPC IS 4#BJJ1JJJ IF
  ! CORPOR,N IS N ASSOCIAT$ 9 ! YE> ) "O
  OR M O!R ,,CCPC'S & XS TAX,N YE> IS N
  LESS ?AN #EA WEEKS4 ,IF TWO OR M
  ,,CCPC'S >E ASSOCIAT$ ) "O ANO!R 9 A
  TAX,N YE>1 ! SMALL BUSI;S DEDUC;N M/ 2
  %>$1 0ALLOCAT+ ! ANNUAL BUSI;S LIMIT (
  4#BJJ1JJJ AM;G/ ! CORPOR,NS =!     #CH
             ,,IT-#GC;,R#F           D#G
  TAX,N YE>4 ,CORPOR,NS MAY FILE AN
  AGREE;T 7,T#B1 ,S*$ULE #BC1 ,AGREE;T
  ,AM;G ,ASSOCIAT$ ,CANADIAN-,3TROLL$
  ,PRIVATE ,CORPOR,NS 6,ALLOCATE !
  ,BUSI;S ,LIMIT7 ANNU,Y MAK+ ? ALLOC,N
  7SEE P>AGRAPH #BD74 ,IF ! TAX,N YE> (!
  ,,CCPC IS %ORT] ?AN #EA WEEKS 9 DUR,N1
  SEE P>AGRAPHS #BG & #BH4 ,9 A4I;N1 IF
  A ,,CCPC HAS A ,"P ,I4#C L>GE
  CORPOR,NS TAX LIABIL;Y =! PREC$+ YE>1
  ! CORPOR,N'S BUSI;S LIMIT =! YE> MAY 2
  REDUC$ OR ELIM9AT$ 7SEE P>AGRAPH #BI74

  ,9 CALCULAT+ A ,,CCPC'S BUSI;S LIMIT1
  ! PROVI.NS ( SEC;N #ABE %D 2 APPLI$ 9
  ! FOLL[+ ORD]3
  --SUBSEC;NS #ABE7#B7 TO 7#D7
    7SUBSEC;NS #ABE7#C7 & 7#D7 >E 4CUSS$
    9 P>AGRAPHS #BD 6#BF72
  --SUBSEC;N #ABE7#E7 7SEE P>AGRAPHS #BG
    & #BH72 &
  --SUBSEC;N #ABE7#E.A7 7SEE P>AGRAPH
    #BI74
                                     #CI
       ,AGREE;T ,FIL$ 0,ASSOCIAT$    E#G
                ,,CCPC'S
    
#BD4 ,ALL ,,CCPC'S T1 "U SEC;N #BEF1 >E
  ASSOCIAT$ ) EA* O!R 9 A TAX,N YE>1 MAY
  9 A3ORD.E ) SUBSEC;N #ABE7#C7 ALLOCATE
  AM;G/ !MVS1 ! ANNUAL BUSI;S LIMIT
  AM.T4 ,IF ? ALLOC,N IS MADE 9 A3ORD.E
  )! REQUIRE;TS DESCRIB$ 9 P>AGRAPH #BE1
  &! TOTAL (! AM.TS ALLOCAT$ IS
  4#BJJ1JJJ1 ! BUSI;S LIMIT =! TAX,N YE>
  ( EA* CORPOR,N IS ! AM.T ALLOCAT$ 6X1
  Z 9DICAT$ ON ! AGREE;T FIL$ 9
  PRESCRIB$ =M4
#BE4 ,9 ORD] 6ALLOCATE ! 4#BJJ1JJJ
  BUSI;S LIMIT =A TAX,N YE> AM;G/ !
  CORPOR,NS REF]R$ 6IN SUBSEC;N
  #ABE7#C71 ! FOLL[+ M/ 2 D"O3
  7A7 AN AGREE;T 9 PRESCRIB$ =M 7,T#B1
    ,S*$ULE #BC7 M/ 2 FIL$ 0EA* CORPOR,N
    9 ! GR\P ( ASSOCIAT$ CORPOR,NS2 &
  7B7 ! DULY -PLET$ AGREE;T M/ 2 SIGN$
    ON 2HALF ( EA* CORPOR,N 9 T GR\P4
  ,A NEW AGREE;T M/ 2 FIL$ = EA* TAX,N
  YE>4 ,IF ANO!R CORPOR,N T IS N     #DJ
             ,,IT-#GC;,R#F           F#G
  AN 9ITIAL SIGNATORY 6! AGREE;T IS
  3SID]$ 6BE ASSOCIAT$ )! CORPOR,NS T
  DID SIGN ! AGREE;T1 T CORPOR,N M/ AL
  SIGN ! AGREE;T4 ,IF AN AGREE;T HAS N
  BE5 SIGN$ 0ALL ! CORPOR,NS T ORIG9,Y
  FIL$ Z 2+
--------------------------------------#H
  ASSOCIAT$1 OR IF X IS N SIGN$ 7^U
  REQUE/7 0ANO!R CORPOR,N T IS 3SID]$
  6BE ASSOCIAT$1 SUBSEC;N #ABE7#D7 MAY 2
  APPLI$4 ,NORM,Y1 AN ASSESS;T W N 2
  MADE BAS$ ON AN 9COMPLETE AGREE;T4

    ,": ,E6ECTIVE ,AGREE;T ,N ,FIL$
    
#BF4 ,IF ANY "O (! ,,CCPC'S T >E
  ASSOCIAT$ ) EA* O!R 9 A TAX,N YE> FAIL
  6FILE OR REFUSE 6BE A SIGNATORY 6AN
  AGREE;T "U SUBSEC;N #ABE7#C7 7,T#B1
  ,S*$ULE #BC7 )9 #CJ "DS AF WRITT5
  NOTICE HAS BE5 ISSU$ 6ANY ( !M ( S* A
  REQUIRE;T1 ! ,M9I/] %1 "U SUBSEC;N
  #ABE7#D71 ALLOCATE 4#BJJ1JJJ 9 TOTAL
  6"O OR M ( !M &! AM.T S ALLOCAT$   #DA
             ,,IT-#GC;,R#F           A#H
  6ANY "PICUL> CORPOR,N % 2 ! CORPOR,N'S
  BUSI;S LIMIT =! YE>4

   ,TAX,N ,YE> ,LESS ,?AN #EA ,WEEKS
    
#BG4 ,! BUSI;S LIMIT =A ,,CCPC =A TAX,N
  YE> ( LESS ?AN #EA WEEKS DUR,N IS1 "U
  P>AGRAPH #ABE7#E77B71 T PROPOR;N (!
  CORPOR,N'S BUSI;S LIMIT Z O!RWISE
  DET]M9$ T ! NUMB] ( "DS 9 ! TAX,N YE>
  IS ( #CFE4

    ,MULTIPLE ,TAX,N ,YE>S 9 ! ,SAME
              ,CAL5D> ,YE>
    
#BH4 ,A ,,CCPC MAY H TWO OR M TAX,N YE>S
  5D+ 9 A CAL5D> YE> 9 : X IS ASSOCIAT$
  ) ANO!R ,,CCPC4 ,9 ? SITU,N1 !
  ,,CCPC'S BUSI;S LIMIT 7= PURPOSES (
  P>AGRAPH #ABE7#A77C771 = EA* SECOND OR
  SUBSEQU5T TAX,N YE> T 5DS 9 ! CAL5D>
  YE>1 IS DET]M9$ "U P>AGRAPH
  #ABE7#E77A7--SUBJECT 6! RULE 9
  P>AGRAPH #ABE7#E77B7 7SEE          #DB
             ,,IT-#GC;,R#F           B#H
  P>AGRAPH #BG7--6BE ! LESS] (! FOLL[+
  TWO AM.TS3
  --SUBP>AGRAPH #ABE7#E77A77;I7--! AM.T
    ALLOCAT$ 6! CORPOR,N "U SUBSEC;N
    #ABE7#C7 OR 7#D71 Z XS BUSI;S LIMIT
    = XS F/ TAX,N YE> T 5D$ 9 T CAL5D>
    YE>2 &
  --SUBP>AGRAPH #ABE7#E77A77;II7--! AM.T
    ALLOCAT$ 6! CORPOR,N "U SUBSEC;N
    #ABE7#C7 OR 7#D71 = T "PICUL> TAX,N
    YE> 5D+ 9 T CAL5D> YE>4
  ,! 9T5T ( SUBP>AGRAPH #ABE7#E77A77;II7
  IS 65SURE T ! TOTAL DET]M9$ =! BUSI;S
  LIMIT =A GR\P ( ASSOCIAT$ ,,CCPC'S
  DOES N EXCE$ 4#BJJ1JJJ = ANY SECOND OR
  SUBSEQU5T TAX,N YE>4

,EXAMPLE
  ,AT ALL RELEVANT "TS1 ;,Y ,LTD4 & ;,Z
  ,LTD4 7 ASSOCIAT$ ,,CCPC'S4 ,BO? _H
  TAX,N YE>S 5D+ ,SEPTEMB] #CJ1 #BJJA1
  NEI ( : 0 A %ORT TAX,N YE>4 ,(! BUSI;S
  LIMIT ( 4#BJJ1JJJ1 ;,Y ,LTD4 & ;,Z
  ,LTD4 ALLOCAT$ 6!MVS 4#EJ1JJJ &    #DC
             ,,IT-#GC;,R#F           C#H
  4#AEJ1JJJ1 RESPECTIVELY1 PURSUANT
  6SUBSEC;N #ABE7#C71 =! YE> 5D$
  ,SEPTEMB] #CJ1 #BJJA4
  ,ON ,OCTOB] #A1 #BJJA1 ;,X ,LTD4 2CAME
  ASSOCIAT$ ) ;,Y ,LTD4 & ;,Z ,LTD4 ;,X
  ,LTD4 _H A FISCAL YE> 5D ( ,NOVEMB]
  #CJ1 #BJJA1 & ? 0 N A %ORT TAX,N YE>4
  ;,Y ,LTD4 & ;,Z ,LTD4 *ANG$ _! FISCAL
  YE> 5D 6,NOVEMB] #CJ4 ,! ASSOCIAT$
  GR\P ( -PANIES ALLOCAT$ ! 4#BJJ1JJJ
  BUSI;S LIMIT1 PURSUANT 6SUBSEC;N
  #ABE7#C71 =! YE> 5D$ ,NOVEMB] #CJ1
  #BJJA1 Z FOLL[S3

  --4#AEJ1JJJ 6;,X ,LTD41
  --4#BE1JJJ 6;,Y ,LTD41 &
  --4#BE1JJJ 6;,Z ,LTD4
  
  ,H["E1 2C ;,Y ,LTD4'S YE> 5D$ ,NOVEMB]
  #CJ1 #BJJA 0 XS SECOND TAX,N YE> 9 !
  #BJJA CAL5D> YE>1 P>AGRAPH #ABE7#E77A7
  LIMIT$ ;,Y ,LTD4'S BUSI;S LIMIT = T
  TAX,N YE> 6! LESS] (! FOLL[+ TWO
  AM.TS3                             #DD
             ,,IT-#GC;,R#F           D#H
  --4#EJ1JJJ 7SUBP>AGRAPH
    #ABE7#E77A77;I772 &
  --4#BE1JJJ 7SUBP>AGRAPH
    #ABE7#E77A77;II774
  
  ,! RESULT1 4#BE1JJJ1 0 !N SUBJECT 6!
  RULE 9 P>AGRAPH #ABE7#E77B7 7SEE
  P>AGRAPH #BG73 4#BE1JJJ MULTIPLI$ 0#FA
  DIVID$ 0#CFE EQUALS 4#D1AGH4

  ,"!=E1 ;,Y ,LTD4'S BUSI;S LIMIT =! YE>
  5D$ ,NOVEMB] #CJ1 #BJJA 0 4#D1AGH4

  ,SIMIL>LY1 ! BUSI;S LIMIT = ;,Z ,LTD4
  =! YE> 5D$ ,NOVEMB] #CJ1 #BJJA 0
  4#D1AGH 7I4E41 ! LESS] ( 4#AEJ1JJJ &
  4#BE1JJJ1 MULTIPLI$ 0#FA DIVID$
  0#CFE74

  ,! 4#AEJ1JJJ ALLOCAT$ "U SUBSEC;N
  #ABE7#C7 6;,X ,LTD4 Z XS BUSI;S LIMIT
  =! YE> 5D$ ,NOVEMB] #CJ1 #BJJA DID N
  *ANGE1 = ^! R1SONS3
                                     #DE
             ,,IT-#GC;,R#F           E#H
  --,S9CE ;,X ,LTD4'S TAX,N YE> 5D$
    ,NOVEMB] #CJ1 #BJJA 0 XS ONLY TAX,N
    YE> 9 ! #BJJA CAL5D> YE>1 P>AGRAPH
    #ABE7#E77A7 _H NO APPLIC,N 6X4
  --,S9CE ;,X ,LTD4'S TAX,N YE> 5D$
    ,NOVEMB] #CJ1 #BJJA 0 N A %ORT TAX,N
    YE>1 P>AGRAPH #ABE7#E77B7 _H NO
    APPLIC,N 6X4
  
      ,REDUC;N (! ,BUSI;S ,LIMIT =
            ,L>GE ,CORPOR,NS
    
#BI4 ,A ,,CCPC'S A3ESS 6! SMALL BUSI;S
  DEDUC;N IS RE/RICT$ 0SUBSEC;N
  #ABE7#E.A7 "? ! REDUC;N ( XS ANNUAL
  BUSI;S LIMIT4 ,! AM.T (! REDUC;N IS
  CALCULAT$ Z FOLL[S3

  ! CORPOR,N'S BUSI;S LIMIT =! YE> 72F
  REDUC;N7 MULTIPLI$ 0XS ,"P ,I4#C TAX
  LIABIL;Y =! PREC$+ YE> DIVID$
  04#AA1BEJ

                                     #DF
             ,,IT-#GC;,R#F           F#H
  ,! CALCUL,N (! CORPOR,N'S ,"P ,I4#C
  TAX LIABIL;Y REF]R$ 6ABV EXCLUDES ANY
  DEDUC;N PROVID$ "U SUBSEC;N #AHA.A7#B7
  OR 7#D7 F ,"P ,I4#C TAX O!RWISE PAYA#4

  ,ANY REDUC;N 9 ! BUSI;S LIMIT "U !
  RULE 9 SUBSEC;N #ABE7#E.A7 WD 9CR1SE
  PROPOR;NATELY ) ANY 9CR1SE 9 TAX PAYA#
  "U ,"P ,I4#C4 ,=A 4CUS.N ( ,"P ,I4#C
  TAX1 SEE ! CURR5T V].N ( ,,IT-#ECB1
  ,"P ,I4#C--,TAX ON ,L>GE ,CORPOR,NS4
--------------------------------------#I
  ,IF ! CORPOR,N IS ASSOCIAT$ ) "O OR M
  CORPOR,NS 7:E!R ,,CCPC'S OR N7 9 !
  YE>1 X IS REQUIR$ 6TAKE 96A3.T1 9 !
  NUM]ATOR (! ABV FRAC;N1 XS [N ,"P
  ,I4#C TAX LIABIL;Y & T ( EA* ASSOCIAT$
  CORPOR,N 7IN ALL CASES1 CALCULAT$ )\T
  ANY DEDUC;N "U SUBSEC;N #AHA.A7#B7 OR
  7#D771 =! LA/ TAX,N YE> 5D+ 9 ! PREC$+
  CAL5D> YE>4


                                     #DG
             ,,IT-#GC;,R#F           A#I
,EXAMPLE
  ,AT ALL RELEVANT "TS ,,XYZ ,LTD4 0 A
  ,,CCPC & 0 N ASSOCIAT$ ) ANY O!R
  CORPOR,N4 ,=! TAX,N YE> 5D$ ,SEPTEMB]
  #CJ1 #BJJA1 ,,XYZ ,LTD4'S BUSI;S LIMIT
  0 4#BJJ1JJJ & XS ,"P ,I4#C TAX
  LIABIL;Y 72F ANY DEDUC;N "U SUBSEC;N
  #AHA.A7#B7 OR 7#D77 0 4#D1JJJ4 ,,XYZ
  ,LTD4 *ANG$ XS FISCAL P]IOD 5D
  6,DECEMB] #CA4 ,=! TAX,N YE> 5D$
  ,DECEMB] #CA1 #BJJA1 ,,XYZ'S BUSI;S
  LIMIT 0 CALCULAT$ Z FOLL[S3

  ,,/EP #A3 ,S9CE ? 0 A %ORT TAX,N YE>1
  P>AGRAPH #ABE7#E77B7 REDUC$ ! BUSI;S
  LIMIT = ? YE> 6! FOLL[+ AM.T3

  4#BJJ1JJJ MULTIPLI$ 0#IB DIVID$ 0#CFE
  EQUALS 4#EJ1DAA

  ,,/EP #B3 ,! APPLIC,N ( SUBSEC;N
  #ABE7#E.A7 FUR!R REDUC$ ! 4#EJ1DAA
  BUSI;S LIMIT 0! FOLL[+ AM.T3
                                     #DH
             ,,IT-#GC;,R#F           B#I
  4#EJ1DAA MULTIPLI$ 04#D1JJJ DIVID$
  04#AA1BEJ EQUALS 4#AG1IBD

  ,,XYZ ,LTD4'S BUSI;S LIMIT =! TAX,N
  YE> 5D$ ,DECEMB] #CA1 #BJJA 0 "!=E
  4#EJ1DAA M9US 4#AG1IBD EQUALS
  4#CB1DHG4

            ,REVIS$ ,AGREE;T
    
#CJ4 ,AF ASSOCIAT$ ,,CCPC'S H FIL$ A
  VALID AGREE;T "U SUBSEC;N #ABE7#C7
  ALLOCAT+ ! 4#BJJ1JJJ BUSI;S LIMIT AM;G
  !MVS =A "PICUL> TAX,N YE>1 "! MAY 2 A
  *ANGE 9 ! TAXA# 9COME =! YE> ( "O OR M
  (! CORPOR,NS1 : MI<T CAUSE ! CORPOR,NS
  6WANT 6REVISE ! ALLOC,N4 ,! ,CANADA
  ,CU/OMS & ,REV5UE ,AG5CY 7,,CCRA7 W
  A3EPT A REVIS$ ALLOC,N AGREE;T Z L;G Z
  X DOES N *ANGE ! AM.T ALLOCAT$ 6ANY
  CORPOR,N =A TAX,N YE> T IS /ATUTE-B>R$
  = PURPOSES ( AN ASSESS;T1 REASSESS;T
  OR A4I;NAL ASSESS;T4
                                     #DI
             ,,IT-#GC;,R#F           C#I
,EXAMPLE
  ,AT ALL RELEVANT "TS ,,CCPC'S ;,A
  ,LTD41 ;,B ,LTD41 ;,C ,LTD41 ;,D ,LTD4
  & ;,E ,LTD4 7 ASSOCIAT$ ) EA* O!R & NO
  O!R CORPOR,NS 7 ASSOCIAT$ ) ANY ( !M4

  ,! FIVE CORPOR,NS FIL$ A VALID AGREE;T
  "U SUBSEC;N #ABE7#C7 ALLOCAT+ !
  4#BJJ1JJJ BUSI;S LIMIT =A "PICUL>
  TAX,N YE> Z FOLL[S3

  ;,A ,LTD4--4# NIL
  ;,B ,LTD4--4#EJ1JJJ
  ;,C ,LTD4--4#EJ1JJJ
  ;,D ,LTD4--4#EJ1JJJ
  ;,E ,LTD4--4#EJ1JJJ

  ;,A ,LTD4 0 N ASSESS$ ANY TAX =! YE>1
  BAS$ ON XS RETURN REPORT+ NO TAXA#
  9COME =! YE>4 ,EA* (! O!R CORPOR,NS 0
  ASSESS$ =! YE> ON ! BASIS T XS BUSI;S
  LIMIT 0 ! AM.T ALLOCAT$ 6X "U !
  AGREE;T4
                                     #EJ
             ,,IT-#GC;,R#F           D#I
  ,SUBSEQU5TLY1 ;,A ,LTD4 FIL$ AN AM5D$
  RETURN REPORT+ AN AM.T ( TAXA# 9COME
  =! YE>1 &! FIVE CORPOR,NS FIL$ A
  REVIS$ AGREE;T ALLOCAT+ ! 4#BJJ1JJJ
  BUSI;S LIMIT Z FOLL[S3

  ;,A ,LTD4--4#DJ1JJJ
  ;,B ,LTD4--4#DJ1JJJ
  ;,C ,LTD4--4#DJ1JJJ
  ;,D ,LTD4--4#DJ1JJJ
  ;,E ,LTD4--4#DJ1JJJ

  ,! ,,CCRA 9DICAT$1 H["E1 T X WD N
  A3EPT ! REVIS$ AGREE;T S FIL$ 2C A
  REASSESS;T = ;,E ,LTD4 =! YE> 9 "Q 0
  0T "T /ATUTE-B>R$ 7XS YE>-5D 2+ DI6]5T
  F T (! O!R CORPOR,NS74

  ,9/1D1 ! ,,CCRA A3EPT$ A REVIS$
  AGREE;T FIL$ 0! FIVE CORPOR,NS
  ALLOCAT+ ! 4#BJJ1JJJ BUSI;S LIMIT =!
  YE> Z FOLL[S3

                                     #EA
             ,,IT-#GC;,R#F           E#I
  ;,A ,LTD4--4#CG1EJJ
  ;,B ,LTD4--4#CG1EJJ
  ;,C ,LTD4--4#CG1EJJ
  ;,D ,LTD4--4#CG1EJJ
  ;,E ,LTD4--4#EJ1JJJ

  ,! REVIS$ AGREE;T ON ? BASIS 0 A3EPT$
  0! ,,CCRA 2C "! 0 NO *ANGE 6! AM.T
  ALLOCAT$ 6;,E ,LTD4

      ,IMPACT ,( ,! ,SMALL ,BUSI;S
     ,DEDUC;N ,ON ,! ,A3EL]AT$ ,TAX
    ,REDUC;N ,= ,,CCPC'S ,& ,ON ,ANY
    ,G5]AL ,TAX ,REDUC;N ,CLAIM$ ,0A
                 ,,CCPC
    
#CA4 ,SUBSEC;N #ABC.D7#C7 PROVIDES =A
  REDUC;N 7REF]R$ 6IN ? BULLET9 Z !
  8A3EL]AT$ TAX REDUC;N07 F A ,,CCPC'S
  TAX O!RWISE PAYA# "U ,"P ;,I (! ,ACT4
  ,G5],Y1 A ,,CCPC'S A3EL]AT$ TAX
  REDUC;N IS #G@3P 7AF #BJJJ7 ON UP 6AN
  A4I;NAL 4#AJJ1JJJ ( XS 9COME--
                                     #EB
             ,,IT-#GC;,R#F           #AJ
  2T 4#BJJ1JJJ 7! P>AGRAPH #ABE7#A77C7
  8BUSI;S LIMIT0 =! SMALL BUSI;S
  DEDUC;N7 & 4#CJJ1JJJ-F AN ACTIVE
  BUSI;S C>RI$ ON 9 ,CANADA4 ,M
  SPECIFIC,Y1 ! BASE T IS US$ =A
  ,,CCPC'S A3EL]AT$ TAX REDUC;N IS
  CALCULAT$ 0M1NS (A 8L1/ (0 =MULA1 TAK+
  96A3.T ! AM.TS 7SUBJECT 6C]TA9
  ADJU/;TS7 DET]M9$ "U P>AGRAPHS
  #ABE7#A77A71 7B7 & 7C7 ) RESPECT 6!
  ,,CCPC'S SMALL BUSI;S DEDUC;N4 ,! BASE
  =! ,,CCPC'S A3EL]AT$ TAX REDUC;N IS !N
  REDUC$ 0! BASE US$ = XS SUBSEC;N
  #ABE7#A7 SMALL BUSI;S DEDUC;N Z WELL Z
  O!R POR;NS ( XS TAXA# 9COME T H
  B5EFIT$ F V>I\S SPECIAL E6ECTIVE TAX
  RATES PROVID$ "U ! ,ACT1 S* Z1 =
  EXAMPLE1 ! BASE = XS SUBSEC;N
  #ABE.A7#A7 MANUFACTUR+ & PROCESS+
  PR(ITS 7,M&,,PP7 DEDUC;N 7IF ANY74 ,IF
  TWO OR M ,,CCPC'S >E ASSOCIAT$ ) "O
  ANO!R1 !Y M/ E6ECTIVELY %>E ! ABV-
  M5;N$ A4I;NAL 4#AJJ1JJJ LIMIT-2C !
  UPP] LIMIT = EA* ,,CCPC IS         #EC
             ,,IT-#GC;,R#F          A#AJ
  ACTU,Y #C OV] #B ( XS P>AGRAPH
  #ABE7#A77C7 8BUSI;S LIMIT01 : IS
  SUBJECT 6! RULES =! ALLOC,N "!( AM;G
  ASSOCIAT$ ,,CCPC'S Z 4CUSS$ 9
  P>AGRAPHS #BC 6#CJ4

  ,SUBSEC;N #ABC.D7#B7 PROVIDES =A G5]AL
  REDUC;N 6A CORPOR,N'S TAX O!RWISE
  PAYA# "U ,"P ;,I1 0A P]C5TAGE-:
  9CR1SES 9 /AGES F #A@3P 9 #BJJA 6#G@3P
  AF #BJJC-(! CORPOR,N'S 8FULL RATE
  TAXA# 9COME04 ,9 G5]AL T]MS1 A
  CORPOR,N'S 8FULL RATE TAXA# 9COME0 IS
  T "P ( XS TAXA# 9COME T HAS N B5EFIT$
  F ANY ( V>I\S SPECIAL E6ECTIVE TAX
  RATES PROVID$ "U ! ,ACT4 ,?US1 A
  ,,CCPC'S 8FULL RATE TAXA# 9COME0 7!
  CALCUL,N ( : DI6]S F ! 8FULL RATE
  TAXA# 9COME0 ( O!R CORPOR,NS7 DOES N
  9CLUDE1 AM;G O!R ?+S1 ! BASE US$ = XS
  SUBSEC;N #ABE7#A7 SMALL BUSI;S DEDUC;N
  OR ! BASE US$ = XS SUBSEC;N #ABC.D7#C7
  A3EL]AT$ TAX REDUC;N4
                                     #ED
             ,,IT-#GC;,R#F          B#AJ
,EXAMPLE #A
  ,AT ALL RELEVANT "TS1 ;,A ,LTD4 0 A
  ,,CCPC & 0 N ASSOCIAT$ ) ANY O!R
  CORPOR,N4 ;,A ,LTD4'S TAXA# 9COME =!
  YE> 5D$ ,DECEMB] #CA1 #BJJA 0
  4#DJJ1JJJ1 ALL ( : 0 DERIV$ F !
  MANUFACTUR+ 9 ,CANADA ( GDS = SALE4

  ;,A ,LTD4'S SUBSEC;N #ABE7#A7 SMALL
  BUSI;S DEDUC;N =! YE> 0 #AF@3P (
  4#BJJ1JJJ 7XS P>AGRAPH #ABE7#A77C7
  BUSI;S LIMIT =! YE>7 EQUALS 4#CB1JJJ4

  ;,A ,LTD4'S SUBSEC;N #ABE.A7#A7
  ,M&,,PP DEDUC;N =! YE> 0 #G@3P (!
  DI6];E 2T 4#DJJ1JJJ 7XS MANUFACTUR+ &
  PROCESS+ PR(ITS7 & 4#BJJ1JJJ 7! BASE =
  XS SMALL BUSI;S DEDUC;N7 EQUALS #G@3P
  ( 4#BJJ1JJJ EQUALS 4#AD1JJJ4

  ;,A ,LTD4 _H NO SUBSEC;N #ABC.D7#C7
  A3EL]AT$ TAX REDUC;N OR SUBSEC;N
  #ABC.D7#B7 G5]AL TAX REDUC;N =! YE>1
  2C ! FULL AM.T ( XS 4#DJJ1JJJ      #EE
             ,,IT-#GC;,R#F          C#AJ
  TAXA# 9COME _H ALR RCVD ! B5EFIT ( TAX
  REDUC;NS1 ! F/ 4#BJJ1JJJ HAV+ BE5 US$
  9 ! BASE =! SMALL BUSI;S DEDUC;N &!
  NEXT 4#BJJ1JJJ HAV+ BE5 US$ 9 ! BASE
  =! ,M&,,PP DEDUC;N4

,EXAMPLE #B
  ,AT ALL RELEVANT "TS1 ;,B ,LTD4 0 A
  ,,CCPC & 0 N ASSOCIAT$ ) ANY O!R
  CORPOR,N4 ;,B ,LTD4'S TAXA# 9COME =!
  YE> 5D$ ,DECEMB] #CA1 #BJJA 0
  4#DJJ1JJJ1 ALL ( : 0 DERIV$ F C>RY+ ON
  A BUSI;S Z A :OLESAL] ( GDS 9 ,CANADA4

  ;,B ,LTD4'S SUBSEC;N #ABE7#A7 SMALL
  BUSI;S DEDUC;N =! YE> 0 #AF@3P (
  4#BJJ1JJJ 7XS P>AGRAPH #ABE7#A77C7
  BUSI;S LIMIT =! YE>7 EQUALS 4#CB1JJJ4

  ;,B ,LTD4'S SUBSEC;N #ABC.D7#C7
  A3EL]AT$ TAX REDUC;N =! YE> 0 #G@3P (!
  DI6];E 2T 4#CJJ1JJJ 7I4E41 #C OV] #B (
  XS P>AGRAPH #ABE7#A77C7 8BUSI;S
  LIMIT07 & 4#BJJ1JJJ 7I4E41 !       #EF
             ,,IT-#GC;,R#F          D#AJ
  BASE US$ = XS SUBSEC;N #ABE7#A7 SMALL
  BUSI;S DEDUC;N7 EQUALS #G@3P (
  4#AJJ1JJJ EQUALS 4#G1JJJ4

  ;,B ,LTD4'S SUBSEC;N #ABC.D7#B7 G5]AL
  TAX REDUC;N =! YE> 0 #A@3P (! DI6];E
  2T 4#DJJ1JJJ 7XS TAXA# 9COME7 &
  4#CJJ1JJJ 7I4E41 ! 4#BJJ1JJJ BASE US$
  =! SMALL BUSI;S DEDUC;N &! 4#AJJ1JJJ
  BASE US$ =! A3EL]AT$ TAX REDUC;N7
  EQUALS #A@3P ( 4#AJJ1JJJ EQUALS
  4#A1JJJ4
-------------------------------------#AA
          ,EXPLAN,N ( ,*ANGES
               ,9TRODUC;N
    
  ,! PURPOSE (! ,EXPLAN,N ( ,*ANGES IS
6GIVE ! R1SONS =! REVI.NS 6AN 9T]PRET,N
BULLET94 ,X \TL9ES REVI.NS T WE H MADE Z
A RESULT ( *ANGES 6! LAW1 Z WELL Z
*ANGES REFLECT+ NEW OR REVIS$ 9T]PRET,NS
(! ,,CCRA4

                                     #EG
           ,R1SONS =! ,REVI.N       A#AA
    
  ,WE H REVIS$ ! BULLET9 PRIM>ILY
6REFLECT ! IMPACT (! ,L]RIC ,9VE/;T
,CORP4 CASE & 6EXP& ! SCOPE (! BULLET9
6COV] ! SUBJECT (A REVIS$ AGREE;T
6ALLOCATE ! BUSI;S LIMIT AM;G ASSOCIAT$
,,CCPC'S4

      ,LEGISLATIVE & ,O!R ,*ANGES
    
  ,P>AGRAPH #A 0 REVIS$ 6DELETE ! -;TS
ON ! M1N+ ( 8,CANADIAN-3TROLL$ PRIVATE
CORPOR,N0 & 9/1D REF] 6! CURR5T V].N (
,,IT-#DEH1 ,CANADIAN-,3TROLL$ ,PRIVATE
,CORPOR,N1 : COV]S ? TOPIC4
  ,9 P>AGRAPH #B1 CL>IFY+ *ANGES 7 MADE
9 7A7 & M G5]AL ^W+ 0 US$ 9 7B7 2C !
DETAILS (! RULES DESCRIB$ "!9 >E COV]$ 9
P>AGRAPH #BB4
  ,9 P>AGRAPH #D & P>AGRAPH #F1
HI/ORICAL RULES 7 REMOV$ & CL>IFY+
*ANGES 7 MADE4
  ,P>AGRAPH #AA 0 REVIS$ 6REFLECT ! FACT
T ! PROPOS$ AM5D;TS PREVI\SLY        #EH
             ,,IT-#GC;,R#F          B#AA
REF]R$ 6IN A NOTE AT ! 5D ( T P>AGRAPH 7
5ACT$ Z LAW4 ,AL1 CL>IFY+ *ANGES 7 MADE
9 P>AGRAPH #AA4
  ,! -;TS 9 P>AGRAPH #AG 7=M]LY P>AGRAPH
#AF7 ON ! 8M ?AN FIVE FULL-"T EMPLOYEES0
RULE 9 A SITU,N 9VOLV+ A JO9T V5TURE OR
CO-[N]%IP (A BUSI;S 7 REVIS$ 2C (!
,F$]AL ,C\RT ( ,APP1L'S DECI.N 9 !
,L]RIC ,9VE/;TS ,CORP4 CASE4 ,! 4CUS.N
(! 8M ?AN FIVE FULL-"T EMPLOYEES0 RULE )
RESPECT 6A BUSI;S C>RI$ ON 0A CORPOR,N Z
A MEMB] (A "PN]%IP HAS BE5 MOV$ F =M]
P>AGRAPH #AF 7N[ P>AGRAPH #AG7 6! 5D (
P>AGRAPH #BJ4
  ,9 P>AGRAPH #AH1 A M9OR ^W+ *ANGE 0
MADE 9 7C7 = PURPOSES ( CL>IFIC,N4
  ,P>AGRAPHS #BJ & #BA 7 3SID]ABLY
REVIS$ = PURPOSES ( CL>IFIC,N & 6REMOVE
HI/ORICAL -+-9TO-=CE RULES4 ,AL1 !
4CUS.N (! 8M ?AN FIVE FULL-"T EMPLOYEES0
RULE ) RESPECT 6A BUSI;S C>RI$ ON 0A
CORPOR,N Z A MEMB] (A "PN]%IP HAS BE5
MOV$ F =M] P>AGRAPH #AF 7N[ P>AGRAPH
#AG7 6! 5D ( P>AGRAPH #BJ4           #EI
             ,,IT-#GC;,R#F          C#AA
  ,9 P>AGRAPH #BB1 HI/ORICAL RULES 7
REMOV$1 *ANGES 7 MADE 6REFLECT AM5D;TS
3SEQU5TIAL ON ! A4I;N 6! ,ACT ( SEC;N
#ABC.D1 & O!R M9OR RE^W+ *ANGES 7 MADE =
PURPOSES ( CL>IFIC,N4
  ,P>AGRAPHS #BC1 #BE & #BF 7 REVIS$
6REF] 6! CORRECT =M T ASSOCIAT$ ,,CCPC'S
%D CURR5TLY 2 US+ = PURPOSES ( ALLOCAT+
! BUSI;S LIMIT4 ,M9OR ^W+ *ANGES 7 AL
MADE 9 P>AGRAPHS #BC & #BF1 = PURPOSES (
CL>IFIC,N4
  ,9 P>AGRAPH #BH1 CL>IFY+ *ANGES 7 MADE
9 ! TEXT &! EXAMPLE4 ,! EXAMPLE 0 AL
REVIS$ 6REFLECT CURR5T DATES4
  ,P>AGRAPH #BI 0 REVIS$ 6DELETE
HI/ORICAL -+-9TO-=CE RULES1 & 6DELETE !
EXPLAN,N ( ,"P ,I4#C TAX & 9/1D REF] 6!
CURR5T V].N ( ,,IT-#ECB1 ,"P ,I4#C--,TAX
ON ,L>GE ,CORPOR,NS1 : COV]S ? TOPIC4
,AL 9 P>AGRAPH #BI1 CL>IFIC,N *ANGES 7
MADE &! EXAMPLE 0 REVIS$ 6REFLECT M
R1LI/IC FACTS & CURR5T DATES4

                                     #FJ
             ,,IT-#GC;,R#F          D#AA
  ,P>AGRAPH #CJ 0 A4$ 6COV] ! SUBJECT (A
REVIS$ AGREE;T 6ALLOCATE ! BUSI;S LIMIT
AM;G ASSOCIAT$ ,,CCPC'S4
  ,P>AGRAPH #CA 0 A4$ 6COV] ! IMPACT (!
SMALL BUSI;S DEDUC;N ON ! A3EL]AT$ TAX
REDUC;N = ,,CCPC'S & ANY G5]AL TAX
REDUC;N CLAIM$ 0A ,,CCPC4
















                                     #FA