globaltaxnews.ey.comSign up for tax alert emailsForwardPrintDownload |
03 April 2019 Canada's federal budget 2019-20 | Proposed changes to stock option deduction Federal Finance Minister Bill Morneau tabled his fourth budget on March 19. The budget proposes significant changes to the tax treatment of employee stock options. Where a corporation grants stock options with a fair market value exercise price to employees, paragraph 110(1)(d) of the Income Tax Act (the Act) provides a deduction equal to 50% of the benefit realized on the exercise or disposition of options where certain other conditions are satisfied. Budget 2019-20 proposes to limit the availability of the stock option deduction where options are granted to employees of "large, long-established, mature firms." A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details. Document ID: 2019-5463 |
