•d) Carrying on a
trade or business through a wholly owned
subsidiary
–CRA has indicated that not only can an NPO carry
on income-generating activity (provided that there is a causal
relationship between the profit making activity and the exempt
purpose of the organization), an NPO may also derive income
from a taxable subsidiary (Document 2002-0153887)
–Also,
if an NPO holds all of the shares of the capital stock of a taxable
corporation, its NPO status is not necessarily endangered
(Document 2001-0093245)
•