Application of Requirement for Active Involvement

Three years of active involvement required

Where farm assets were transferred to an eligible descendant under RAFS, the descendant was required to establish that they had, over the three years immediately before the transfer of the farm, been actively involved in the farm.    

Who was required to meet the active involvement rule?

The following table demonstrates how a person met the active involvement rule.

Example of active involvement of one member of couple

Where a farm(s) was transferred to a daughter and son-in-law, provided that the son-in-law demonstrated active involvement in the farm, it was not relevant that the daughter may have worked outside of the farm enterprise.

Commission discretion in exceptional circumstances

Under RAFS the Commission had discretionary power to deem an eligible descendant to have been actively involved in a farm enterprise where they would have been actively involved but for circumstances out of their control.