Safe harbour capital return

Return obtained by a specified individual for a taxation year that does not exceed the result of A × B, where:

• A is the highest rate of interest prescribed for a given quarter of the year;
• B is the total of the amounts obtained by the formula C × D ÷ E, where:
  • C is the FMV of property contributed by the specified individual to a related business at the time of the contribution,
  • D is the number of days in the year that the property (or property substituted for the property) is used in support of the activities of the related business and has not, directly or indirectly, in any manner whatever, been returned to the specified individual, and
  • E is the number of days in the year.