Each of the corporations involved is a Canadian-controlled private corporation CCPC , and the employee acquired the share after May 22, unless it was acquired before January 1, , under an agreement reached prior to April 24, The employee sells or exchanges the share in the year. There is no requirement that the exercise price be at least equal to the FMV at the date of grant, nor any requirement that the shares qualify as prescribed shares in order to be eligible for the deduction. Immediately after the agreement was reached, the employee was dealing at arm's length with the qualifying persons involved a corporation or a mutual fund trust. A current or former employee is deemed to receive a taxable benefit in the year he or she acquires a security that is a listed share or a mutual fund unit. Where the stock option plan provides an employee the choice to receive cash in lieu of shares, and the employee opts to receive cash, the employer is permitted a deduction for the cash payment.
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