Income Tax Act — I-3.3 118.1
 donee. Financial institution defined (20) For the purpose of subsection 118.1(18), financial institution means a corporation that is (a) a member of the Canadian Payments Association; or (b) a credit union that is a shareholder or member of a body corporate or organization that is a central for the purposes of the Canadian Payments Act . Options (21) Subject to subsections (23) and (24), if an individual has granted an option to a qualified donee in a taxation year, no amount in respect of the option is to be included in computing the total charitable gifts, total cultural gifts or total ecological gifts in respect of any taxpayer for any taxation year. Application of subsection (23) (22) Subsection (23) applies if (a) an option to acquire a property of an individual is granted to a qualified donee; (b) the option is exercised so that the property is disposed of by the individual and acquired by the qualified donee at a particular time; and (c) either (i) the amount that is 80% of the fair market value of the property at the particular time is greater than or equal to the total of (A) the consideration received by the individual from the qualified donee for the property, and (B) the consideration received by the individual from the qualified donee for the option, or (ii) the individual establishes to the satisfaction of the Minister that the granting of the option or the disposition of the property was made by the individual with the intention to make a gift to the qualified donee. Granting of an option (23) If this subsection applies, notwithstanding subsection 49(3), (a) the individual is deemed to have received proceeds of disposition of the property equal to the property’s fair market value at the particular time; and (b) there shall be included in the individual’s total charitable gifts, for the taxation year that includes the particular time, the amount by which the property’s fair market value exceeds the total described in subparagraph (22)(c)(i). Disposition of an option (24) If an option to acquire a particular property of an individual is granted to a qualified donee and the option is disposed of by the qualified donee (otherwise than by the exercise of the option) at a particular time (a) the individual is deemed to have disposed of a property at the particular time (i) the adjusted cost base of which to the individual immediately before the particular time is equal to the consideration, if any, paid by the qualified donee for the option, and (ii) the proceeds of disposition of which are equal to the lesser of the fair market value of the particular property at the particular time and the fair market value of any consideration (other than a non-qualifying security of any person) received by the qualified donee for the option; and (b) there shall be included in the total charitable gifts of the individual for the individual’s taxation year that includes the particular time the amount, if any, by which the proceeds of disposition as determined by paragraph (a) exceed the consideration, if any, paid by the donee for the option. Returned property (25) Subsection (26) applies if a qualified donee has issued to an individual a receipt referred to in subsection (2) in respect of a transfer of a property (in this subsection and subsection (26) referred to as the “original property”) and a particular property that is (a) the original property is later transferred to the individual (unless that later transfer is reasonable consideration or remuneration for property acquired by or services rendered to a person); or (b) any other property that may reasonably be considered compensation for or a substitute for, in whole or in part, the original property, is later transferred to the individual. Returned property (26) If this subsection applies, then (a) irrespective of whether the transfer of the original property by the individual to the qualified donee referred to in subsection (25) was a gift, the individual is deemed not to