,canada ,cu/oms #a & ,rev5ue ,ag5cy ,9t]pret,n ,bullet9 ,subject3 ,9come ,tax ,act ,sep>ate ,busi;ses ,numb]3 ,,it-#bjf;,r ,date3 ,octob] #bi1 #aigi ,ref];e3 ,sec;n #c 7al sec;ns #ad & #abh1 subsec;n #aaa7#e72 & ,regul,ns #aaja7#a7 & #bfje7 ,? bullet9 replaces & c.els ,9t]pret,n ,bullet9 ,numb] ,,it-#bjf dat$ ,april #ad1 #aige4 ,curr5t revi.ns >e designat$ 0v]tical l9es4 #a4 ,! "q ( :e!r a taxpay] is 3duct+ "o busi;s or m ?an "o 9 a tax,n ye> c >ise :5 m ?an "o busi;s op],n is c>ri$ on simultane\sly or "o busi;s op],n su3e$s ano!r4 ,x c 2 ( import.e1 = example1 ": #a ,,x-#bjf;,r a#a 7a7 a taxpay] has made a 4posi;n ( prop]ty & w recapture capital co/ all[.e if t & o!r simil> prop]ty t he [ns >e 9 sep>ate classes 2c !y >e us$ 9 sep>ate busi;ses z ref]r$ 6in ,regul,n #aaja7#a72 7b7 a taxpay] is -put+ cumulative eligi# capital & eligi# capital am.ts "u sec;n #ad = ea* ( 8 sep>ate busi;ses2 7c7 an 9dividual is allocat+ ! 9come ( ea* ( 8 sep>ate busi;ses 6! prov9ces ": x 0 e>n$1 pursuant 6,regul,n #bfje2 7d7 3trol (a corpor,n has *ang$ &! provi.ns ( subsec;n #aaa7#e7 m/ 2 3sid]$ 9 respect ( xs non-capital losses or1 = #aihc & subsequ5t tax,n ye>s1 xs f>m losses4 ,simultane\s ,busi;s ,op],ns #b4 ,:e!r ! c>ry+ on ( two or m simultane\s busi;s op],ns 0a #b ,,x-#bjf;,r b#a taxpay] is ! same busi;s is dep5d5t ^u ! degree ( 9t]connec;n1 9t]lac+ or 9t]dep5d;e &! ext5t (! un;y embrac+ ! busi;s op],ns4 ,! fact t ! busi;s op],ns (a taxpay] >e ( di6]5t natures1 = example manufactur+ & sell+1 does n preclude !m f 2+ ! same busi;s if "! is a su6ici5t 9t]connec;n1 9t]lac+ or 9t]dep5d;e 2t ! op],ns4 #c4 ,:5 det]m9+ ! degree ( 9t]connec;n1 9t]lac+1 or 9t]dep5d;e 2t simultane\s busi;s op],ns1 factors 6be 3sid]$ cd 9clude1 b >e n 6be re/rict$ to1 ! foll[+3 7a7 ,! ext5t 6: ! two op],ns h -mon factors t may 2 p]t95t4 ,= example --------------------------------------#b d ! two op],ns h ! same3 processes1 products1 cu/om]s1 s]vices (f]$ 6cu/om]s1 types ( 9v5tories1 employees1 ma*9]y & equip;t4 7b7 ,:e!r ! op],ns >e c>ri$ on 9 ! same premises4 ,= example1 if a h>dw>e /ore &a sport+ gds /ore #c ,,x-#bjf;,r a#b >e op]at$ 9 two 4t9ct loc,ns1 x is possi# t !y %d 2 look$ ^u z sep>ate busi;ses1 b if !y >e 9 "o /ore1 x is alm c]ta9 t !y >e "o busi;s4 7c7 ,"o op],n may exi/ prim>ily 6supply ! o!r4 ,an example ( ? miry+ on ( m>ket-g>d5 op],ns *iefly =! purpose ( supply+ a hotel ) fre% produce2 9 ^! circum/.es1 ! two op],ns likely %d 2 reg>d$ z "o busi;s1 ev5 if a small am.t (! m>ket-g>d5 produce is sold else":4 7d7 ,:e!r ! op],ns h di6]+ fiscal ye>- 5ds4 7e7 ,:e!r ! taxpay]'s a3.t+ sy/em records ! transac;ns ( bo? op],ns z if !y 7 ^? ( "o busi;s1 or :e!r sep>ate -plete sets ( records >e ma9ta9$ "?\t ! ye>2 if ! latt]1 too m* wei-5d = tax & o!r report+ purposes4 #d ,su3essive ,busi;s ,op],ns b#b #d4 ,": "o busi;s op],n su3e$s ano!r ! foll[+ -;ts may 2 ( assi/.e 9 det]m9+ if ! two busi;ses >e ! same busi;s3 7a7 ": ! su3e$+ busi;s op],n is n ! same k9d z ! =m]1 ! two op],ns w 2 view$ z di6]5t busi;ses at ! di6]5t "ts & no o!r factors w op]ate 6*ange t view2 7b7 ": a busi;s op],n c1ses or is 4pos$ (& foll[+ ? ! same taxpay] acquires ano!r busi;s op],n (! same k9d1 ! two busi;s op],ns w norm,y 2 3sid]$ 6be ! same busi;s if ! second busi;s op],n is pur*as$ on or >.d ! same "t t ! f/ op],n is 4pos$ ( or x c 2 e/abli%$ t a second op],n 0 3templat$ at ! "t ( 4posi;n (! f/ op],n2 7c7 ": ! su3e$+ busi;s op],n (a corpor,n is (! same k9d1 b [n]%ip (! corpor,n has *ang$1 ! two op],ns w norm,y n 2 3sid]$ ! same busi;s if ! f/ busi;s c1ses op],n 2f ! #e ,,x-#bjf;,r c#b second op],n 2g9s4 ,:e!r a busi;s c1ses is dep5d5t ^u factors s* z ! foll[+3 7;i7 ! sale ( all 9v5tory1 7;ii7 4missal ( all employees1 7;iii7 vac,n ( busi;s premises4 --------------------------------------#c ,! sale ( all fix$ assets (a busi;s is n 3sid]$ a m&atory require;t =! c1s+ (a busi;s if x c o!rwise 2 e/abli%$ 6h c1s$4 #e4 ,:5 det]m9+ :e!r busi;s op],ns >e (! same k9d1 ! pr9cipal factor 6be 3sid]$ is ! type ( busi;s t a taxpay] is in4 ,x is n ess5tial t ! same 9v5tory or ma*9]y & equip;t 2 us$ 9 ! two op],ns4 ,factors1 s* z a *ange 9 "n or a *ange 9 loc,n (a busi;s >e n1 9 !mvs1 mat]ial :5 det]m9+ :e!r busi;s op],ns >e ! same k9d4 ,-preh5sive rules on :5 busi;s op],ns >e (! same k9d >e n possi#1 b ! foll[+ >e examples3 #f ,,x-#bjf;,r a#c 7a7 ! op],n ( hotels1 motels & lodg+ h\ses1 ev5 ?\< ! facilities & s]vices (f]$ may v>y widely2 7b7 ! op],n ( retail drug /ores1 :e!r or n ea* has a prescrip;n s]vice1 a lun* c.t]1 or an ext5d$ l9e ( non- drug gds2 7c7 ^? activities t -e )9 ! def9i;n ( 8f>m+0 9 subsec;n #bdh7#a7 ev5 ?\< !y >e 4simil> or >e 3duct$ 9 di6]5t places2 7d7 ^? activities t -e )9 ! def9i;n ( 8fi%+0 9 subsec;n #bdh7#a7 ev5 ?\< !y may 2 3duct$ s1son,y at widely sep>at$ fi%+ gr.ds4 ,bankruptcy #f4 ,! same busi;s 3t9ues 6exi/ at ! "t :5 a corpor,n or an 9dividual 2comes bankrupt4 ,h["e1 any loss ( s* a corpor,n or 9dividual = any tax,n ye> prec$+ t 9 : an absolute ord] ( 4*>ge is grant$ is n deducti# "u sec;n #g ,,x-#bjf;,r b#c #aaa 9 -put+ taxa# 9come =! tax,n ye> 9 : ! ord] 0 grant$ or any subsequ5t ye> 7p>agraphs #abh7#a77g7 & #abh7#b77g774 #g4 ,! same busi;s 3t9ues 6exi/ :5 an 9t]im rcvr op]ates x4 #h4 ,": a rcvr or a rcvr & manag] is appo9t$ 0a ,c\rt or 0agree;t1 x is 3sid]$ t he is c>ry+ on ! same busi;s =m]ly c>ri$ on 0! [n] un.s ! facts 9dicate o!rwise4 #h