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ARTICLE · 03 JULY 2019

Proposed Changes To Stock Option Tax Rules

Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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On June 17, 2019, Canada's finance minister tabled a Notice of Ways and Means Motion regarding the taxation of employee stock options.

CanadaFinance and Banking
Blake, Cassels & Graydon LLP
Blake, Cassels & Graydon LLP
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On June 17, 2019, Canada's finance minister tabled a Notice of Ways and Means Motion regarding the taxation of employee stock options. This follows from the government's announcement in the 2019 Budget that it intended to limit the availability of the 50 per cent deduction on employee stock option benefits (i.e., the deduction that effectively provides capital gains treatment on qualifying options). For more details on the 2019 Budget, please see our March 2019 Blakes Bulletin: 2019 Federal Budget – Selected Tax Measures.

CHANGES TO TAKE EFFECT JANUARY 1, 2020

The proposed changes to the stock option rules are scheduled to take effect on January 1, 2020. Stock options granted prior to January 1, 2020 should remain subject to the existing deduction regime.

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