On November 30
th, 2020, the Honourable Chrystia
Freeland, Deputy Prime Minister and Minister of Finance, released
the Fall Economic Statement 2020 (the Statement ), which
contains certain proposals to amend the
Income Tax
Act (Canada) (the ITA ) and
the
Excise Tax Act (the ETA ).
Income Tax Measures
Employee Stock Options
The Statement proposes rules related to the tax treatment
associated with the exercise of employee stock options. The rules
will generally disallow the 50% stock option deduction by the
employee if the stock option vests more than $200,000 worth of
stock in a calendar year, if the employer is not a
Canadian-controlled private corporation (CCPC), and if the employer