Thanks for the link RedOnion, it contains at least some answers, but some questions remain open too.
For anyone else that might have the same questions, the answers I found to my questions are:
1) Unfortunately the answer seems to be yes (according to section 3.4.3) because the options don't expire in under 7 years after being granted, if they did the answer would have been no.
4) and 5) Pay income tax on the difference between the option price and the market value of the shares at exercise time. Pay capital gains on any subsequent gains.
Unfortunately the answers to these two question remains unclear:
2) When the options vest, I decline to purchase any shares (or decline some of them)
3) I leave the company before the options vest and thus forfeit the options
It is not clear that the tax paid upfront when the shares were granted can be claimed back in either of these cases, even though it would seem logical that it should be, as one would end up out of pocket overall in this situation. None of the example in the document seem to cover this case where long options are granted but never exercised. Can anyone clarify this situation?
It's also not explicitly stated when the tax is due on the grant of long options, though one can assume it's considered RTSO and treated similarly to tax due on exercised shares i.e. due within 30 days via Form RTSO1.
Thanks in advance for any further help anyone can provide.