Tag archives: emplyees

Update: 2016 Federal Budget – Liberals drop tax proposal for employee stock options

Tuesday marked the release of the new Liberal government’s first budget. The budget, entitled “Growing the Middle Class”, did not contain the anticipated changes to the tax treatment of employee stock options discussed last week on Deal Law Wire. The proposed changes were first announced in the Liberal party’s election platform and would have capped claims for employee stock option deductions by high earners. Federal Finance Minister Bill Morneau indicated yesterday that the proposed changes to employee stock options are no longer in the federal government’s plans. This is good news for Canadian start-ups that voiced concerns that … Continue Reading

Will the 2016 Federal Budget contain anticipated changes to employee stock options?

There has been much speculation about the tax measures to be included in the new federal government’s first budget that will be presented next week, on March 22. Of particular interest to the start-up and technology communities is whether the budget will introduce changes to the tax treatment of employee stock options. The Liberal party’s election campaign promised reform in this area, but contained few details of the proposal.

Current treatment of stock options

An employee stock option grants an employee the right to purchase shares of its employer company at a stated exercise price. Upon exercise of the option, … Continue Reading

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