Subsection 6204(1)
Paragraph 6204(1)(a)
See Also
Birch Hill Equity Partners Management Inc. v Rogers Communications Inc., 2015 ONSC 7189
In addition to denying the s. 110(1)(d) deduction on the basis that executives had sold their optioned shares to a specified person (who on-sold...
Administrative Policy
7 October 2011 Roundtable, 2011-0411951C6 F - Retenues à la source - options d'achat d'actions
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...
7 March 2007 External T.I. 2005-0157381E5 - Regulation 6204
Although it would appear that Regulation 6204(1)(a)(i) would cause shares not to be prescribed shares if a loan agreement by the corporation...
18 September 2001 External T.I. 2001-0071485 - PRESCRIBED SHARES UNDER ESOPs
Under a Stock Option Plan, employees could exercise their options and pay the option price with shares the employee already owned (a feature...
6 August 1992 T.I. (Tax Window, No. 23, p. 5, ¶2142)
The right of a corporation to redeem shares issued under an employee stock option plan for their net book value will not satisfy the test in...
28 January 1991 T.I. (Tax Window, Prelim. No. 3, p. 21, ¶1112)
Where a wholly-owned subsidiary of a public corporation establishes a stock option plan under which the parent is obligated to acquire the shares...
18 October 89 T.I. (March 1990 Access Letter, ¶1150)
Shares which carried a minimum cumulative preferential dividend of $0.01 per share but which otherwise participated fully in the earnings of the...
87 C.R. - Q.23
Where the plan provides that an employee can fund his purchase of an optioned share by requiring that the corporation acquire other shares issued...
Paragraph 6204(1)(b)
Cases
Montminy v. Canada, 2017 FCA 156
The taxpayers were management employees of a software company (“Cybectec”), which was a wholly-owned subsidiary of a holding company...
See Also
Montminy v. The Queen, 2016 TCC 110, rev'd 2017 FCA 156
The taxpayers were management employees of a software company (“Cybectec”), which was a wholly-owned subsidiary of a holding company...
Administrative Policy
7 October 2011 Roundtable, 2011-0411951C6 F - Retenues à la source - options d'achat d'actions
In order to effect s. 153(1.01) withholding, certain employers have some shares redeemed immediately following the exercise of employee stock...
29 August 2005 External T.I. 2005-0125811E5 F - Actions prescrites: 6204(1)b) du Règlement
On the day before a third party acquired all of the shares of a Canadian-controlled private corporation (CCPC), two directors of its directors...
Articles
Joint Committee, "Technical Amendments Package of September 16, 2016", Submission letter of 15 November 2016
Adverse implication re convertible shares
The proposed addition of Reg. 6204(1)(b)(iv) seems to imply that a convertible voting share would not be...
John McClure, Brian Kearl, "Stock Options in Spinout Transactions", Canadian Tax Highlights, Vol. 24, No. 7, July 2016, p. 7
Prescribed share issue if immediate cancellation of acquired share (p. 7)
[R]egulation 6204(l)(b) provides generally that a share does not qualify...
Subsection 6204(2)
Paragraph 6204(2)(c)
Cases
Montminy v. Canada, 2017 FCA 156
When a third-party purchaser agreed to acquire all the assets of Opco, the management employees agreed with the 100% shareholder of Opco...
Subsection 6204(3)
Administrative Policy
2006 Ruling 2005-0151001R3 - Prescribed Shares / plan of arrangement
where pursuant to an arrangement agreement that is implemented under a plan of arrangement, employee stock options previously granted by the...