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ARTICLE · 24 NOVEMBER 2015

Government Clarifies Grandfathering For Existing Stock Options

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This is welcome news to current optionholders who were faced with the difficult decision of whether to prematurely exercise existing options.

CanadaTax
Mitchell Sherman
Mitchell Sherman
Carrie Smit
Carrie Smit
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In its 2015 election platform, the Liberal Party announced its plan to change the taxation of stock options, by capping the amount that may be claimed under the 50% stock option deduction generally available in respect of eligible stock options. Since the election, there has been concern among tax practitioners and the business community that any proposed limits might be applied to the future exercise of stock options that have already been granted.

In connection with his first Economic and Fiscal Update, the Minister of Finance sought to alleviate concerns by assuring Canadians that the Department of Finance is still considering what changes, if any, would be appropriate, and that any changes would not be retroactive.

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