2010 Federal Budget – Employee Stock Option Proposals

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PricewaterhouseCoopers provided the Minister of Finance with a proposal on the proposed changes to in the 2010 Federal Budget to employee stock options with tandem ‘cash out’ or share appreciation rights (TSARs).

We believe the proposals may cause significant tax and non-tax issues for corporations that have granted TSARs before 4 p.m. EST on March 4^th, 2010, the date and time of the federal budget announcement. PwC recommends the government introduce appropriate grandfathering provisions for such TSARs.

For more details, read our letter to the Ministry of Finance.