Do stock options from a Canadian-controlled private corporation get better tax treatment than public company options?

Yes, generally. Stock options from a genuine Canadian-controlled private corporation get more favourable timing than options from a public company, because the taxable employment benefit is generally deferred until the shares are actually sold, rather than being taxed immediately at exercise the way public company options usually are. This is a meaningful practical advantage, since it means you're not forced to come up with cash to pay tax on a benefit before you've actually sold anything and received real proceeds.

Public company option holders don't get this deferral, for them, exercising the option is generally the taxable moment regardless of whether they sell the shares right away or continue holding them, which can create a real cash-flow problem if the shares are illiquid or the holder wants to keep them rather than sell immediately. CCPC employees don't face that same mismatch between when tax is owed and when they actually have cash from a sale.

Because this advantage depends specifically on genuine CCPC status, and can be lost if the company's status changes before the shares are sold, understanding your company's current status, and what happens if that status changes later, matters for knowing whether you can actually rely on this more favourable timing.