14 May 2010 External T.I. 2009-0323151E5 F - Cross Border Stock Option -- summary under Subparagraph 128.1(1)(b)(iv)

An individual, who had been granted stock options by Chinaco as an employee, immigrated to Canada to work for a Canadian affiliate at a time that the options had an in-the-money value, and shortly thereafter exercised those options. In finding that the individual thereby realized a s. 7 taxable benefit that was computed in the usual manner notwithstanding that a portion of that benefit had accrued prior to his immigration, CRA noted that s. 7 benefits were excluded under s. 128.1(1)(b)(iv) and s. 128.1(10) – excluded right or interest – (c).