The Canadian government recently tabled its budget for 2010, which proposes significant changes to the way in which both employees and employers are taxed in Canada on stock options, including:

  • elimination of the deferral for public company stock options;
  • restrictions on the deduction for the cash out of stock options; and
  • special relief for tax deferral elections.

For more information on these changes to the taxation of employee stock option plans, see the Osler Update: Budget Briefing 2010.