March 17, 2010
Federal
budget 2010 – significant changes to the taxation of employee stock options
The 2010 federal budget announced significant changes to the taxation
of employee stock options with respect to three areas:
- The taxation of options that are “cashed out”;
- The tax deferral of stock option benefits; and
- Employer withholding obligations.
The proposed changes will generally be effective after March 4, 2010.
For more information, please read our Canadian Tax Alert dated March 11, 2010.
Proposed HST place of supply rules released
As noted in our March 1, 2010 special edition of Canadian Indirect Tax News, significant changes have been proposed
to the current place of supply rules related to services and intangible
personal property. There is also proposed expansion of the self-assessment and
rebate provisions (for the provincial component of the HST) and certain
clarifying amendments. Read our detailed review and analysis of the proposed rules.
Prescribed interest rates for Q2 of
2010
The Canada Revenue
Agency (CRA) has announced the prescribed annual
interest rates that will apply from April 1, 2010 to June 30, 2010. These
rates remain unchanged from the preceding quarter. The rate on amounts owed to
the CRA will be 5%, the rate on amounts that the CRA owes to individuals and
corporations will be 3%, and the rate used to calculate taxable benefits will
be 1%.
Canada-Morocco
social security agreement
The Canada-Morocco
social security agreement entered into force on March 1, 2010. The agreement,
signed in Rabat on July 1, 1998, is the first of its kind concluded between the
two countries. The Convention may help individuals
qualify for certain Canadian or Moroccan benefits, including old age, retirement,
disability or survivor benefits. For more information,
please refer to the Service Canada website.
Budget dates
The federal government and the following provinces/territories have
announced their 2010–2011 budget dates:
Upcoming:
Manitoba March 23, 2010
Saskatchewan March
24, 2010
Ontario March 25,
2010
Quebec March 25,
2010 (unofficial)
Newfoundland
and Labrador March 29, 2010
Tabled:
Federal March 4, 2010
New Brunswick December
1, 2009
Northwest
Territories January 28, 2010
Alberta February 9,
2010
British
Columbia March 2,
2010
Nunavut March
8, 2010
Visit our email subscription page to
subscribe to our publications, or to modify or cancel your subscription.
Visit our Tax homepage to learn about our services.
This publication is produced by Deloitte & Touche LLP as an
information service to clients and friends of the firm, and is not intended to
substitute for competent professional advice. No action should be initiated
without consulting your professional advisors. Your use of this document is at
your own risk.
