Options are exercised and the shares donated to a charity within 30 days. After noting that a taxpayer who does not make the s. 7(1.31) identification is subject to s. 7(1.3), CRA stated:
In order to qualify for the deduction under paragraph 110(1)(d.01), the gift must be made in the year and on or before the day that is 30 days after the day on which the taxpayer acquired the security. However, under subsection 7(1.3) a taxpayer is deemed to have disposed of securities that are identical property in the order in which the taxpayer acquired them. … In addition, paragraphs 7(1.3)(a) and (b) include presumptions with respect to the timing of the acquisition of such securities. As well, pursuant to paragraph 7(1.3)(a), "a taxpayer holding both deferral and non-deferral securities is considered to dispose of the non-deferral securities first.” … Depending on the circumstances, the application of the presumptions in subsection 7(1.3) could result in the requirement of paragraph 110(1)(d.01) in respect of the acquisition of securities in the year of disposition not being satisfied.