1999 APFF Round Table, Q. 1 (No. 9M19190)

Where an American citizen receives stock options from an American public corporation while working for it and living in the United States, and then became resident in Canada, s. 7 would apply to him if he then disposed of his rights to acquire the shares to a person with whom he was dealing at arm's length. Consequently, the exception in s. 128.1(1)(b)(v) would apply.

Where an American citizen, who received stock options from an American public corporation while working for it and living in the United States, becomes a resident of Canada, s. 7 would apply in the year in which he exercises his right to acquire the shares.