Bob and Sylvie Pelletier

Question 1

Are stock options a taxable benefit, explain how taxation works

Answer 1

The employee receives a taxable benefit at the time of the options are exercised and the shares are purchased. The taxable benefit is calculated at FMV of stock minus the price paid

Question 2

Is a company vehicle a taxable benefit, explain how the taxation works

Answer 2

A company car that is used for personal use is a taxable benefit. The benefit comprises of a standby charge and operating costs. If the car is used more than 50% of the time for work than a reduced standby charge applies

Question 3

How are non-cash gifts taxed

Answer 3

Non-cash gifts are non-taxable to the extent that the total aggregate value of all non-cash gifts are less than $500