Liberals Abandon Stock Option Changes


    The Liberal government 2016 budget did not cover anticipated changes to the tax treatment of employee stock option benefits, which formed part of the Liberal party’s 2015 election platform, says a ‘Goodmans LLP Update.’ Bill Morneau, the federal finance minister, says the tax measure was not included in the budget due to concerns raised during pre-budget consultations that the change would hinder the growth of Canadian start-up companies and small firms in the technology sector, which regularly use stock options “as a legitimate form of compensation for their employees.” Revisiting the changes is not in the government’s plan, he says.