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  • Condition 5 - Tainted income ratio less than 5%


    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    To pass the active income test, the tainted income ratio of a CFC for a statutory accounting period must be less than 0.05 - that is, less than 5%. If both the bottom line and the top line of the relevant formula is nil, the CFC is taken to have passed the active income test.

    Last modified: 05 Dec 2006QC 18000