7 October 2011 Roundtable, 2011-0411951C6 F - Retenues à la source - options d'achat d'actions -- summary under Paragraph 6204(1)(a)

Where a stock option agreement is modified to give the employer the right to purchase for cancellation a portion of the shares issued on the exercise of employee stock options so as to generate cash on which it can withhold and satisfy its source deduction obligations, the shares which are so issued will not be prescribed shares under Reg. 6204(1)(a)(iv) or 6204(1)(b).