Smallco Ltd, a Canadian-controlled private corporation, earned $300,000 of active business income in 20X9 of which $35,000 was service income from Bigco Ltd. Smallco is owned 60% by individual A and 40% by individual B. Bigco is owned 96% by individual X and 4% by individual Y. Individuals Y and A are sisters. Income tax reference: ITA 125(1) (a)(i)(B), “specified corporate income” ITA 125(7), ITA 125 (3.2), ITA 251(2). Determine Smallco’s small business deduction for 20X9. What steps, if any can be taken to improve Smallco’s tax liability in 20X9?