In 1974, an individual ("Pierce") who employed the taxpayer as a ranch manager, granted him an option to acquire 2500 common shares of Ranger Oil owned by Pierce at a price approximately equal to their fair market value at that time. The option was exercisable at the rate of 500 shares per year subject to the taxpayer continuing his employment. Marceau J.A. held that although there was a benefit from employment both at the time of the granting of the option and at the time of exercise (in 1980, when the price of Ranger Oil had substantially appreciated), the "first benefit, although a real one, eludes independent quantification", with the result that "only the second benefit, the quantifiable one, falls within the scope of s. 6(1)(a)":
"The employee who was granted an option to buy shares is in the same situation as the employee who was given the opportunity to purchase his employer's manufactured goods at a variance with their fair market value or the possibility to borrow money from his employer at a lower rate of interest. There is no fixed quantifiable benefit which flows to the first employee until he buys the shares just as there is no quantifiable benefit to the second employee until he purchases the goods or borrows the money."