Further to our article regarding Canada's COVID-19 Economic Response Plan regarding Taxation, the following is a summary of the Government of Canada's Supporting Canadians and Fighting COVID-19: Fall Economic Statement 2020.
The Government continued to play softball with the 2020 Fall Economic Statement delivered by Finance Minister Freeland and did not proceed with the measures expected by some to change personal or corporate income tax rates or the capital gains inclusion rate. The statement delivered touched on a few other matters as follows:
- The Canada Emergency Wage Subsidy ("CEWS") and the Canada Emergency Rent Subsidy ("CERS") and other lockdown support programs were provided further details from December 20, 2020 to March 13, 2021;
- A simplified home office tax deduction for 2020 for employees was announced;
- Certain non-resident vendors supplying digital sales to Canadians or in Canada to register for GST/HST on July 1, 2021; and
- The most substantial change was with respect to Employee Stock Options. The proposed new rules for employee stock options will be in effect, with some clarifications, for those options granted after June 30, 2021. The original proposals were released in 2019. The proposals, among other things, impose a $200,000/per year vesting limit on qualifying options for the employee stock options fifty-percent (50%) deduction. This limitation applies to mutual fund trusts and corporations, other than Canadian Controlled Private Corporations ("CCPCs") or non-CCPCs with gross revenues of $500 million or less.
The above comments are meant as general information. For advice on how to best plan for the implementation of the above announcements, please reach out to your TDS Tax Law lawyer.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
