Précis: Rocco Gagliese is a composer and a Writer Member of SOCAN. He carries on his business through a corporation (RGP). Under the rules of SOCAN almost all of the corporate revenue took the form of transfers from SOCAN. CRA reassessed to deny RGP the small business deduction on the basis that the payments from SOCAN were not “active business income”. RGP appealed to the Tax Court which allowed its appeal with costs on the basis that the amounts paid to RGP by SOCAN were income from an active business carried on in Canada.
Rocco Gagliese Productions v. R. – TCC: Amounts paid to composer’s company by Society of Composers, Authors and Music Publishers of Canada (SOCAN) were active business incomeREAD MORE »