Income Tax Act — I-3.3 110
raph 7(1)(e) to have been received by the taxpayer, within the first three taxation years of the graduated rate estate of the taxpayer, by (I) the graduated rate estate of the taxpayer, (II) a person who is a beneficiary (as defined in subsection 108(1)) under the graduated rate estate of the taxpayer, or (III) a person in whom the rights of the taxpayer under the agreement have vested as a result of the death, (i.1) the security (A) is a prescribed share at the time of its sale or issue, as the case may be, (B) would have been a prescribed share if it were issued or sold to the taxpayer at the time the taxpayer disposed of rights under the agreement, (B.1) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, would have been a prescribed share if it were issued or sold to the taxpayer immediately before the death of the taxpayer, (C) would have been a unit of a mutual fund trust at the time of its sale or issue if those units issued by the trust that were not identical to the security had not been issued, (D) would have been a unit of a mutual fund trust if (I) it were issued or sold to the taxpayer at the time the taxpayer disposed of rights under the agreement, and (II) those units issued by the trust that were not identical to the security had not been issued, or (E) in the case of a benefit deemed by paragraph 7(1)(e) to have been received by the taxpayer, would have been a unit of a mutual fund trust if (I) it were issued or sold to the taxpayer immediately before the death of the taxpayer, and (II) those units issued by the trust that were not identical to the security had not been issued, (ii) where rights under the agreement were not acquired by the taxpayer as a result of a disposition of rights to which subsection 7(1.4) applied, (A) the amount payable by the taxpayer to acquire the security under the agreement is not less than the amount by which (I) the fair market value of the security at the time the agreement was made exceeds (II) the amount, if any, paid by the taxpayer to acquire the right to acquire the security, and (B) at the time immediately after the agreement was made, the taxpayer was dealing at arm’s length with (I) the particular qualifying person, (II) each other qualifying person that, at the time, was an employer of the taxpayer and was not dealing at arm’s length with the particular qualifying person, and (III) the qualifying person of which the taxpayer had, under the agreement, a right to acquire a security, and (iii) where rights under the agreement were acquired by the taxpayer as a result of one or more dispositions to which subsection 7(1.4) applied, (A) the amount payable by the taxpayer to acquire the security under the agreement is not less than the amount that was included, in respect of the security, in the amount determined under subparagraph 7(1.4)(c)(ii) with respect to the most recent of those dispositions, (B) at the time immediately after the agreement the rights under which were the subject of the first of those dispositions (in this subparagraph referred to as the “original agreement”) was made, the taxpayer was dealing at arm’s length with (I) the qualifying person that made the original agreement, (II) each other qualifying person that, at the time, was an employer of the taxpayer and was not dealing at arm’s length with the qualifying person that made the original agreement, and (III) the qualifying person of which the taxpayer had, under the original agreement, a right to acquire a security, (C) the amount that was included, in respect of each particular security that the taxpayer had a right to acquire under the original agreement, in the amount determined under subparagraph 7(1.4)(c)(iv) with respect to the first of those dispositions was not less than the amount by which (I) the fair market value of the particular security at the time the original agreement was made exceeded (II) the amount, if any, paid by the taxpayer to acquire th