771.2.1.2.1. A corporation to which paragraph a of section 771.2.1.2 refers for a particular taxation year is a corporation in respect of which the number of hours of work referred to in either of the following subparagraphs exceeds 5,000:(a) the number of hours of work carried out by the employees of the corporation in the particular year; or
(b) the number of hours of work carried out by the employees of the corporation and by those of the corporations with which it is associated in the particular year, in the taxation years of those corporations that ended in the calendar year preceding the calendar year in which the particular year ends.
For the purposes of the first paragraph, the following rules apply:(a) the number of hours of work carried out by a person in a week that may be taken into account may not exceed 40; and
(b) subject to the third paragraph, the hours worked may be taken into account only to the extent that they were paid.
For the purposes of this section, a person who holds, directly or indirectly, shares in the capital stock of a corporation is considered to be an employee of the corporation and the hours of work the person carries out for the corporation may be taken into account even if they are not remunerated.
For the purposes of subparagraph a of the first paragraph, where the number of days in the corporation’s particular taxation year is less than 365, the number of hours of work carried out by the corporation’s employees in the particular year is deemed to be equal to the product obtained by multiplying that number otherwise determined by the proportion that 365 is of the number of days in the particular taxation year.
2017, c. 12017, c. 1, s. 2141.