​These companies will soon have to apply a $200,000 annual cap on the amount of employee stock options that continue to qualify for the stock option deduction. Although these rules limit the availability of the stock option deduction for certain employees, employers may be entitled to the deduction, if they meet certain conditions. These changes, which are currently making their way through the legislative process, apply to stock options granted by employers that are corporations or mutual fund trusts, but do not apply to Canadian-controlled private corporations (CCPCs) or non-CCPCs with annual gross revenue in the most recent consolidated financial statements that does not exceed $500 million. 

Download this edition of the TaxNewsFlash to learn more.