Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CCRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ADRC.
Principal Issues: The writer wrote on behalf of contstituents with respect to the timing and computation of benefits under paragraph 7(1)(a) of the Act where the value of the shares under the option decreases.
Position: Provided general information and noted that the issue is under review at Finance.
Reasons: Issue is still under review.
Signed on December 17, 2001
XXXXXXXXXX
Dear XXXXXXXXXX:
Thank you for your letter of October 25, 2001, concerning the taxation of employee stock purchase plans and the difficulties many of your constituents are experiencing as a result of participation in their employer's plan.
As you are aware, these issues were raised earlier this year and are under review by the Department of Finance. As this review has not yet been completed, I am unable to advise what the outcome might be at this time.
I sympathize with the difficulties this situation is causing your constituents and other individuals and families in the same position. I understand that Mr. Wayne Harding, a Canada Customs and Revenue Agency official of the Income Tax Rulings Directorate, as well as officials of the Vancouver Island Tax Services Office, have been assigned to assist individuals with any problems that may occur. Your constituents can reach Mr. Harding by writing to 16th Floor, Tower A, Place de Ville, 320 Queen Street, Ottawa, Ontario K1A 0L5, or by calling 0-613-957-9769 collect. He is aware of our correspondence and will be pleased to provide assistance.
I appreciate the opportunity to address your concerns.
Yours sincerely,
Martin Cauchon
C.C. Minister's Office
Political Assistant
Wayne Harding
957-9769
November 15, 2001