Good morning guys,
According to Section 12E of the Income Tax Act, one of the many requirements to qualify as a small business corporation are that :
"... none of the shareholders or members at any time during the year of assessment of the company, close corporation or co-operative holds any shares or has any interest in the equity of any other company as defined in section 1 (other than-
(hh) any company, close corporation or co-operative if the company, close corporation or co-operativeó
(A) has not during any year of assessment carried on any trade..."
I have a case where the return has already been submitted that a PTY is not a Small Business Corporation. The area I am uncertain about, is that both members are members in another CC, but it is a CC that has not been trading for a while now.
Have any of you dealt with a similar situation, or are you able to guide me on whether I should do a request for correction on this return?