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ARTICLE · 10 DECEMBER 2020

Selected Tax Measures In The 2020 Fall Economic Statement - Canada

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The Statement proposes rules related to the tax treatment associated with the exercise of employee stock options.

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Maureen Berry
Maureen Berry
Paul Casuccio
Paul Casuccio
Kevin Yip
Kevin Yip
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On November 30th, 2020, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, released the Fall Economic Statement 2020 (the "Statement"), which contains certain proposals to amend the Income Tax Act  (Canada) (the "ITA") and the Excise Tax Act (the "ETA").

Income Tax Measures

Employee Stock Options

The Statement proposes rules related to the tax treatment associated with the exercise of employee stock options. The rules will generally disallow the 50% stock option deduction by the employee if the stock option vests more than $200,000 worth of stock in a calendar year, if the employer is not a Canadian-controlled private corporation (CCPC), and if the employer has an annual gross revenue of not less than $500 million.

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