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Jul 5, 2021 · Bill C-30 has now received Royal Assent and is effective for new employee stock option agreements made on and after July 1, 2021. The legislative amendments were first announced in draft form on November 30, 2020 and previously reported here.
- Mark Firman
Sep 9, 2021 · The Canadian federal government recently restricted the preferential tax treatment of stock options granted on or after July 1, 2021 (as enacted in the 2021 Budget Bill C-30). The following provides an overview of the changes, summarizes the potential impact, and highlights the key decision points for boards and senior management to consider.
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The amendments to the Income Tax Act (Canada) (Tax Act) that restrict the amount that employees are entitled to deduct in respect of stock option benefits (Stock Option Rules) for employee stock options granted on or after July 1, 2021 have now been enacted as part of Bill C-30, An Act to implement certain provisions of the budget tabled in ...
- Old Rules
- New Rules
- Exceptions
- Quebec
- BDO Comment
Under the old rules, when an employee exercises a stock option, a taxable employment benefit will arise equal to the difference between the exercise price and the fair market value of the shares on the date of acquisition. If certain conditions are met, employees are entitled to a 50 percent deduction against the taxable employment benefit. If the ...
Under the new rules, the preferential tax treatment on employee stock options issued by certain employers would be subject to an annual vesting limit of CAD 200,000 per employee, in each year in which options becomes exercisable and based on the fair market value of the underlying shares at the time the options are granted. When an employee exercis...
These new rules would not apply to stock options granted by the following employers: Canadian-controlled private corporations (CCPCs) and non CCPCs or mutual fund trusts with gross revenue determined based on the last prepared financial statements of CAD 500 million or less determined on a consolidated basis where applicable.
The government of Quebec has recently announced that it will amend their legislation to incorporate, with adaptations on the basis of its general principles, the New Rules. Such changes will apply on the same date as the one retained for the application of the relevant provisions of the Federal Income Tax Act.
The new rules will have impact on both employees and employers. Among many implications, the new rules will increase employers’ administrative burden, as they will have to implement new processes to keep track of non-qualified securities and report them to the tax authorities. In light of the new rules, employers will need to: 1. Decide whether and...
May 6, 2024 · Each quarter, on the third Friday in March, June, September, and December, contracts for stock index futures, stock index options, and stock options all expire on the same day. This so-called "triple witching" may lead to greater trading activity and increased volatility.
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1 day ago · (Bloomberg) -- For six straight days, Hong Kong’s benchmark stocks gauge and a measure tracking the cost of its options moved in the same direction. The last time that happened, the Hang Seng ...
