Income Tax Act — I-3.3 180.01
Election — special tax and relief for deferral of stock option benefits 180.01 (1) A taxpayer may make an election in prescribed form to have subsection (2) apply for a taxation year in respect of particular securities if (a) the taxpayer elected to have subsection 7(8) apply, as that subsection applied before 4:00 p.m. Eastern Standard Time, March 4, 2010, in respect of the particular securities; and (b) the taxpayer has, in the year and before 2015, disposed of the particular securities; and (c) the election under this subsection is filed (i) if the taxpayer has disposed of the particular securities before 2010, on or before the taxpayer’s filing-due date for 2010, and (ii) in any other case, on or before the taxpayer’s filing-due date for the year of disposition of the particular securities. Effect of election (2) If a taxpayer makes an election under subsection (1) for a taxation year in respect of particular securities, the following rules apply: (a) paragraph 110(1)(d) shall be read without reference to the phrase “1/2 of” in respect of the amount of the benefit deemed by subsection 7(1) to have been received by the taxpayer in the year in respect of the particular securities; (b) the taxpayer is deemed to have realized a capital gain for the year equal to the lesser of (i) the amount that is deductible by the taxpayer under paragraph 110(1)(d), as modified by paragraph (a), and (ii) the taxpayer’s capital loss in respect of the disposition of the particular securities; (c) the taxpayer is liable to pay a tax for the year equal to (i) in the case of a taxpayer resident in the Province of Quebec at the end of the year, 2/3 of the taxpayer’s proceeds of disposition (as defined in section 54, but determined without reference to subsection 73(1)) of the particular securities, and (ii) in any other case, the taxpayer’s proceeds of disposition (as defined in section 54, but determined without reference to subsection 73(1)) of the particular securities; (d) to the extent that the taxation year is outside the normal reassessment period (as defined in subsection 152(3.1)), the election is deemed to be an application for reassessment under subsection 152(4.2); (e) notwithstanding subsection 152(4) and as the circumstances require, the Minister shall re-determine the taxpayer’s net capital loss (as defined in subsection 111(8)) for the taxation year and reassess any taxation year in which an amount has been deducted under paragraph 111(1)(b). (f) subparagraph 127.52(1)(h)(ii) is to be read as “the amount deducted under paragraph 110(1)(d)” for the year in respect of the particular securities; and (g) notwithstanding subsection 152(4) and as the circumstances require, the Minister shall re-determine the taxpayer’s additional tax under subsection 120.2(3) for the taxation year and reassess any taxation year in which an amount has been deducted under subsection 120.2(1). Non-application for employment insurance purposes (3) An amount included under subsection (2)(b) in computing a person’s income under Part I of this Act for a taxation year shall not be included in determining the income of the person for the year under Part VII of the Employment Insurance Act . Provisions applicable to this Part (4) Subsection 150(3), sections 150.1 to 152, 155 to 156.1 and 158 to 167 and Division J of Part I apply to this Part with any modifications that the circumstances require. [NOTE: Application provisions are not included in the consolidated text; see relevant amending Acts and regulations.] 2010, c. 25, s. 46; 2011, c. 24, s. 56