dispose

Stone J.A. found that a surrender of stock option rights by the taxpayer to his employer corporation came within the phrase "otherwise disposed of" in s. 7(1)(b). He noted (at p. 6078) that:

"Those words appear to me to be sufficiently broad as to include an amount received as consideration for the surrender of rights that are thereby extinguished, in contrast with an amount received as consideration for rights that are 'transferred' and, as such, that remain in existence."

The verb "to dispose" (which should receive the same meaning as the expressions "disposition", "proceeds of disposition" and " disposed of") should be given the broadest possible meaning, and encompasses the idea of destruction or extinguishment. The acquisition by a lessee of the lessor's interest led to the extinguishment or "disposition" of the lessee's leasehold interest for the purposes of Regulation 1100(2) (since repealed).