12 December 2002 Ministerial Correspondence 2002-0174064 - OPTION REDUCTION IN VALUE

Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.

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:

Follow-up letter on review of option value decrease issue.

See Ministerial Correspondence 2002-014424

Position: Indicated it is still under review by Finance.

Reasons: Issue is still under review.

Signed on December 12, 2002

XXXXXXXXXX

Dear XXXXXXXXXX:

I am replying to your letter of November 3, 2002, concerning the taxation of employee stock purchase plans. In my letter of July 4, 2002, I indicated that the matter was under consideration by the Department of Finance, but that there had been no decision on whether there would be any changes to the legislation.

I understand that you have also written to Mr. Wayne Harding of the Income Tax Rulings Directorate of the Canada Customs and Revenue Agency, and that you discussed the current status of the Department of Finance review with Mr. Harding during a telephone conversation on November 26, 2002. As discussed in that conversation, officials of the Department of Finance have received a number of representations on this matter, which they wish to consider. Once their review is completed, we will advise you of their decision.

I trust these actions will be helpful.

							Yours sincerely,

							Bill McCloskey
							Assistant Commissioner
							Policy and Legislation Branch

Wayne Harding
957-9769
November 28, 2002
2002-017406 and 2002-017249