The taxpayer company, a private corporation, owned and operated a small shopping centre from which it received

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The taxpayer company, a private corporation, owned and operated a small shopping centre from which it received rental income. There were seven separate tenants, only one of them being what is sometimes referred to as a "Triple A" tenant, namely, a Canadian bank. The corporation, through its principal officer, negotiated all the leases, took care of all the complaints from the tenants and arranged for the maintenance of the shopping centre. It required some activity by the company almost daily. The rental income of the company was mainly for use of the property, but also, to a much lesser extent, for services and other things supplied by the company such as heat, repairs, etc.
REQUIRED
From the facts provided in the case, determine the type of income that the corporation derives from the business that it carries on under the current legislation.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Introduction To Federal Income Taxation In Canada

ISBN: 9781554965021

33rd Edition

Authors: Robert E. Beam, Stanley N. Laiken, James J. Barnett

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