Versions of s. 110(1.31)

If this subsection applies to a taxpayer in respect of an agreement, the securities to be sold or issued under the agreement, for each vesting year of those securities, are deemed to be non-qualified securities for the purposes of this section in the proportion determined by the formula A/B where A is the amount determined by the formula C + D − $200,000 where C is the total of all amounts each of which is the fair market value at the relevant time of each security under the agreement that has that same vesting year, and D is the lesser of$200,000, and the total of all amounts each of which is an amount determined for C in respect of securities that have that same vesting year under agreements (other than the agreement) entered into at or before the relevant time with the particular qualifying person referred to in subsection (1.3) (or another qualifying person that does not deal at arm’s length with the particular qualifying person), other than securities designated under subsection (1.4), old securities (within the meaning of subsection 7(1.4)), securities where the right to acquire those securities is an old right (within the meaning of subsection (1.7)), and securities in respect of which the right to acquire those securities has expired, or has been cancelled, before the relevant time, and no amount is deductible under paragraph (1)(d) in computing the taxable income of the taxpayer for any year; and B is the amount determined for C.