For a given taxation year, the business of a specified individual in which the individual is actively engaged on a regular, continuous and substantial basis during the taxation year or during the five previous taxation years.
- The five previous years during which the specified individual must be engaged do not need to be consecutive. In addition, the years can be before the effective date of the measures regarding split income that apply to adult beneficiaries.
- A business may be eligible as an excluded business of a specified individual even if it derives income from another business that is related to the specified individual and is not an excluded business.
- Engagement in the activities of a business during a year is deemed to be active (regular, continuous and substantial) depending on the nature of the individual's engagement in the business and the nature of the business itself. Engagement representing an average of 20 hours of work per week will be deemed active.