Lynne Lacoursière, Andrew MacDougall
Dec 13, 2019
The past twelve months saw several developments that will have a significant impact on compensation practices in 2020. These include proposed changes to taxation of stock options, the enactment of the federal Pay Equity Act, amendments to the Canada Business Corporations Act (CBCA), new U.S. hedging disclosure rules and a review of automatic securities disposition plans.
Proposed changes to taxation of stock options granted on or after January 1, 2020
On June 17, 2019, proposed amendments to the Income Tax Act (Canada) were introduced which would apply to employee stock options granted by corporations and mutual fund trusts on or after January 1, 2020. See our Osler Update entitled “Canadian government introduces tax legislation applying to employee stock options granted on or after January 1, 2020” on osler.com. The tax treatment of options granted before 2020 is unaffected.
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