Income Tax Act — I-3.3 110
Definitions 110 (0.1) The following definitions apply in this section. consolidated financial statements has the same meaning as in subsection 233.8(1). ( états financiers consolidés ) specified person , at any time, means a qualifying person that meets the following conditions: (a) it is not a Canadian-controlled private corporation; (b) if the qualifying person is a member of a group that annually prepares consolidated financial statements, the total consolidated group revenue reflected in the last consolidated financial statements of the group presented to shareholders or unitholders — of the member of the group that would be the ultimate parent entity , as defined in subsection 233.8(1), of the group if the group were a multinational enterprise group , as defined in subsection 233.8(1) — before that time exceeds $500 million; and (c) if paragraph (b) does not apply, it has gross revenue in excess of $500 million based on (i) the amounts reflected in the financial statements of the qualifying person presented to the shareholders or unitholders of the qualifying person for the last fiscal period of the qualifying person that ended before that time, (ii) if subparagraph (i) does not apply, the amounts reflected in the financial statements of the qualifying person presented to the shareholders or unitholders of the qualifying person for the last fiscal period of the qualifying person that ended before the end of the last fiscal period referred to in subparagraph (i), and (iii) if subparagraph (i) does not apply and financial statements were not presented as described in subparagraph (ii), the amounts that would have been reflected in the annual financial statements of the qualifying person for the last fiscal period of the qualifying person that ended before that time, if such statements had been prepared in accordance with generally accepted accounting principles. ( personne déterminée ) vesting year , of a security to be acquired under an agreement, means (a) if the agreement specifies the calendar year in which the taxpayer’s right to acquire the security first becomes exercisable (otherwise than as a consequence of an event that is not reasonably foreseeable at the time the agreement is entered into), that calendar year; and (b) in any other case, the calendar year in which the right to acquire the security would become exercisable if the agreement had specified that all identical rights to acquire securities become exercisable on a pro rata basis over the period that (i) begins on the day that the agreement was entered into, and (ii) ends on the day that is the earlier of (A) the day that is 60 months after the day the agreement is entered into, and (B) the last day that the right to acquire the security could become exercisable under the agreement. ( année de dévolution ) Deductions permitted (1) For the purpose of computing the taxable income of a taxpayer for a taxation year, there may be deducted such of the following amounts as are applicable Employee options (d) an amount equal to 1/2 of the amount of the benefit deemed by subsection 7(1) to have been received by the taxpayer in the year in respect of a security (other than a security that is a non-qualified security) that a particular qualifying person has agreed after February 15, 1984 to sell or issue under an agreement, in respect of the transfer or other disposition of rights under the agreement or as a result of the death of the taxpayer because the taxpayer immediately before death owned a right to acquire the security under the agreement, if (i) the security was acquired under the agreement (A) by the taxpayer or a person not dealing at arm’s length with the taxpayer in circumstances described in paragraph 7(1)(c), or (B) in the case of a benefit deemed by paragraph 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