How do I report the deferred benefit on CCPC shares in income where form 1212 was previously not required to be filed

Facts:
- exercised security options to purchase shares of a CCPC in 2006 (I think this is the year). There was a taxable benefit on this exercise of the options, but I was not required to reported the benefit in income until the shares are sold.
- at the time the shares were exercised in 2006, Form 1212 was not filed because the company was not public.
-form 1212 is only for shares listed on a stock exchange, and a non elective deferral applied to CCPCs.

-now that the shares were sold in 2014, I am required to include the benefit related to these shares in income, and would also like to take the 50% deduction on line 249.
-my tax return was netfiled but was not accepted by the CRA because there is no record of deferral from Form 1212 on file.
Questions:
How do I report the deferred benefit on these shares in income where form 1212 was previously not required to be filed?
Also, where do I report the 50% deduction? Line 249?

Answer

In order to correct it  you should  adjust all prior returns. T1212 is mandatory to be filed with every year return that you have an outstanding balance of deferred security options.

The taxable benefit of purchase in this case will be a regular taxable income and sale of stocks will be entered as capital gains reporting the purchase price ( including the taxable benefit on purchase) as ACB.

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