By now, you may have heard or read that in 2019, the Department of Finance Canada tabled legislation which related to limiting the preferential stock option treatment enjoyed by employees in Canada. Now in 2021, with updated draft legislation and inclusion with the 2021 Federal Budget, Bill C-30 could significantly impact many employees who receive stock options granted to them on or after July 1, 2021.
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Author Randall Timm
Randall serves as Director with long-time GTN collaborating office, Trowbridge, where he leads the provision of Canadian services for GTN’s clients. Randall has over 25 years of experience assisting multi-national companies with their globally mobile workforces, as well as assisting athletes and entertainers with their international tax affairs. His experience includes both Canadian and US income tax compliance, payroll, social tax, compensation, and tax policy consulting. His vast experience and understanding of the complexities of mobility tax allow him to uncover valuable insights and develop solutions that fit client needs. randall.timm@trowbridge.ca
New Canada Revenue Agency Position on Restricted Stock Units
on May 6, 2021
| By Randall Timm
|
Canada
Just when you may have thought cross-border taxation was getting simpler, the Canada Revenue Agency (CRA) recently put forward Technical Interpretation (CRA Views 2019-0832211I7) to provide further guidance on the concept of sourcing a cross-border employee’s compensation when in receipt of Restricted Stock Unit (RSU) benefits. What the CRA has brought forward is a new methodology of sourcing and is referred to as the “Hybrid Methodology.” They have stated this methodology will be their approach as of the 2021 tax year.
