3 January 2018 Internal T.I. 2017-0709811I7 - Withholding on CCPC stock option benefit -- summary under Subsection 7(1.1)

CRA confirmed that by virtue of an exception to the s. 153(1.01)withholding rule in s. 153(1.01)(b), this withholding requirement does not apply where an arm’s length employee who has exercised options to acquire shares of a Canadian-controlled private corporation, later disposes of the shares and the recognition of the s. 7(1)(a) benefit is correspondingly deferred under s. 7(1.1).