Excise Tax Act (ETA) by virtue
of new powers granted to the Minister under the
Time
Limits and Other Periods Act (COVID-19) (Time Limits
Act), which received royal assent on July 27, 2020.
Statute-Barring Periods
Under the ministerial orders, the period within which the CRA
can issue reassessments was extended by six months or until
December 31, 2020, whichever is earlier, in respect of years or
periods that would otherwise have become statute-barred under the
ITA or ETA on or after May 20, 2020. These ministerial orders are
no longer in force and no further extensions have been
announced.
Relief for Late-Filed Notices of Objection
The one-year time limit for making late-filed objection requests
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