After finding that the value of a share purchase warrant granted to an asset vendor by the parent of the purchaser, as an inducement to enter into a services agreement with the purchaser for a quite long term, was includible in the vendor’s income under s. 12)1)(x), the Directorate stated:
For the Taxpayer, subsection 49(3) will apply at the time the option under the warrant is exercised. Under subsection 52(1), the cost of the warrant will reflect the amount included in income pursuant to paragraph 12(1)(x).