Stock Options in Unpredictable Times, 2010
Date:
September 23 2010
Specific provisions of to the Income Tax Act (Canada) (the “ITA”) make stock options a very attractive form of employee remuneration. Often the tax burden may be deferred and will be half that which it would otherwise be if the remuneration were paid by way of salary.
Employee stock options warrant consideration and pragmatic analysis. Part of the analysis is what the after tax return will be relative to other forms of remuneration. Only in an environment of continuously falling market prices will employee stock options never make financial sense.
The purpose of this booklet is to describe the tax consequences associated with the exercise of employee stock options and to discuss potential planning opportunities. Towards the end of this booklet we have used examples to illustrate the tax workings (including some tips and traps).
Read more by clicking the download button.