Running Out of Options
Highlights
Proposed Change to Preferential Tax Treatment for
Stock Options
New annual cap of $200,000 on options granted by large, mature
companies that will be eligible for the 50% tax deduction.
Extension of Foreign Affiliate Dumping
Rules
Foreign affiliate dumping rules extended to Canadian resident
corporations controlled by non-resident individuals and trusts.
Taxation of Mutual Fund Trusts
Proposed rules may deny a deduction to a mutual fund trust of a
portion of capital gains and income attributed to redeeming
unitholders.
Withholding Tax on Cross-Border Securities Lending
Arrangements
Proposed rules will ensure non-residents cannot avoid
withholding tax on dividends from Canadian corporations by entering
into securities lending arrangements in respect of shares of
Canadian resident corporations.
