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From what MY accountant is feeding me...CRA also looks into the margins of your business...the industry you're in, you have averages of margins everyone sort of falls to.
If your margins doesn't make sense with the rest of the industry, then you might raise a red flag with CRA.
Also, this is just my opinion, starting a business and running a profit is damn hard. A lot of times, ppl put money in it to start, you rent a place, you hire employees, you pay yourself a salary, and you have other expenses, in the end if you don't do enough business during the year, you might end up coming out with a loss.
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