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Corporation used for trading activities


A federal corporation was created last year but never used by the client. Now the client is planning to use this corporation for trading, including trading in cryptocurrencies. He was trading under his own name until now, but going forward, he wants to do it through this corporation.

If the corporation is solely used for active trading, the income will be treated as active income or passive income? Also, are there any factors (like freq of trading, duration, etc.) that are to be considered for CRA to demonstrate that the income from trading activities is active income.

This is CRA’s position for cypto - capital gains (capital) or business income