Stock Option Plans: Reporting Requirement of Foreign Corporation
Date:
July 1 2002
Pursuant to subsection 7(1) of the Income Tax Act and sections 48 and 49 of the Québec Taxation Act, a taxable benefit is conferred upon employees who exercise options under a stock option plan for an exercise price that is less than the fair market value (FMV) of the shares at the time of the acquisition. The benefit is equal to the FMV of the shares at the time of the exercise of the option minus the total of the exercise price of the option under the plan and the amount, if any, paid to acquire the options.
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