Condition 4 - Have the substantiation requirements been met?



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

End of attention

A CFC must have, and be able to produce, accounts to substantiate your claim that the CFC has passed the active income test. If the CFC is a partner in a partnership, that partnership must also keep accounts to substantiate amounts derived by the partnership. If the CFC or partnership does not have the accounts, or does not produce them, the CFC is taken to have failed the active income test. See chapter 4 for details of the substantiation requirements and the procedures.

Is the CFC and any partnership in which it is a partner able to substantiate your claim?


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The CFC has failed the active income test. Go straight to part 3.

Last modified: 05 Dec 2006QC 18000