,canada ,rev5ue ,ag5cy                #a

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act--,b5efits
  6,employees--,/ock ,op;ns
,numb]3 ,,it-#aac;,r#d
,date3 ,augu/ #g1 #aiif
,ref];e3 ,sec;n #g 7al subsec;ns #b7#c71
  #e7#a71 #h7#ab71 #aaj7#a.e71 #aae7#a7
  &! def9i;n ( 8,canadian-3troll$
  private corpor,n0 9 subsec;n #abe7#g71
  p>agraphs #f7#a77a71 #ec7#a77j7 &
  #aaj7#a77d7 & 7d4#a71 & subp>agraph
  #abh.a7#d77b77;vi7 (! ,9come ,tax
  ,act2 & sec;n #fbjd (! ,9come ,tax
  ,regul,ns47

               ,applic,n
    
  ,? bullet9 c.els & replaces ,9t]pret,n
,bullet9 ,,it-#aac;,r#c1 dat$ ,novemb]
#cj1 #aihg4

                                      #a
                ,summ>y              a#a
    
  ,? bullet9 4cusses ! rules 9 ! ,act
relat+ 6! tax,n ( employ;t-relat$ /ock
op;ns 7/ock op;ns74 ,/ock op;ns1 z
4cuss$ 9 ? bullet91 ref] 6c]ta9 "rs t a
corpor,n may grant 6xs employees or 6!
employees (a non->m's l5g? corpor,n t
all[s ! employee 6acquire %>es ( ei ( ^?
corpor,ns4 ,! rules 9 ! ,act relat+
6/ock op;ns >e 9t5d$ 65c\rage grt]
employee 9volve;t 9 ! grant+ corpor,n &
6all[ corpor,ns 6(f] _! employees
f9ancial 9c5tives 9 lieu ( hi<] sal>ies4
  ,b5efits f a /ock op;n >e g5],y 9clud$
9 ! 9dividual's employ;t 9come 9 ! ye> 9
: he or %e sells or ex]cises ! op;n4
,h["e1 ": ! corpor,n t issu$ ! /ock op;n
is a ,canadian-3troll$ private corpor,n1
! 9dividual does n h 69clude ! b5efit 9
9come until he or %e 4poses (! %>es : 7
acquir$ )! /ock op;n4
  ,9 c]ta9 circum/.es1 ! 9dividual is
p]mitt$ a deduc;n1 9 ! ye> t ! /ock op;n
                                      #b
             ,,it-#aac;,r#d          b#a
b5efit is 9clud$ 9 9come1 equal
6#a ov] #d (! /ock op;n b5efit4
  ,! subject matt] ( ? bullet9 is >rang$
"u ! foll[+ h1d+s3

                               ,p>agraph
,taxa# b5efit "u subsec;n #g7#a7  #a1 #b
,9dividual c1ses 6be employee """"""" #c
,:5 sec;n #g does n apply """"""""""" #d
,p>agraphs #g7#a77c71 7d71 & 7e7 """" #e
,agree;t 6sell or issue %>es """"" #f-ab
,employee /ock op;ns (a
  ,canadian-3troll$ private
  corpor,n """""""""""""""""""" #ac1 #ad
,ex*ange ( op;ns or %>es """""" #ae--#ag
,deduc;n "u p>agraph #aaj7#a77d7 """ #ah
,deduc;n "u p>agraph
  #aaj7#a77d4#a7 """"""""""""""""""" #ai
,g5]al -;ts """"""""""""""""""" #bj1 #ba
,non-resid5ts """""""""""""""""""""" #bb
,%>es held 0tru/ee """"""""""""""""" #bc
,3v]ti# pref]r$ %>es """"""""""""""" #bd

                                      #c
          ,4cus.n & ,9t]pret,n       c#a
    
       ,taxa# b5efit "u subsec;n
        #g7#a7 7p>agraphs #a-b7
    
#a4 ,subject 6subsec;n #g7#a.a7 7see #ac
  2l71 subsec;n #g7#a7 applies :5 a
  "picul> corpor,n1 or a tru/ee act+ "u
  xs direc;n1 has agre$ 6sell or issue
  %>es ( t corpor,n or %>es ( ano!r
  corpor,n ) : x does n d1l at >m's l5g?
  6an employee ( ei ! "picul> corpor,n
  or ( any corpor,n ) : x does n d1l at
  >m's l5g?4

  ,except ": subsec;n #g7#a.a7 applies
  7see #ac 2l71 an employee :o ex]cises
  a /ock op;n & acquires %>es is g5],y
  requir$ 69clude 9 employ;t 9come1 9 !
  tax,n ye> 9 : ! %>es >e acquir$1 a
  b5efit equal to3
    --! fair m>ket value (! %>es at ! "t
      ! %>es >e acquir$ 0! employee
    .,m9us3
                                      #d
             ,,it-#aac;,r#d          d#a
    --any am.t pd or paya# 0! employee
      6! corpor,n =! %>es1 .&
    --any am.t pd 0! employee 6acquire !
      "r 6acquire ! %>es4
  ,an employee :o transf]s or o!rwise
  4poses ( "rs "u a /ock op;n agree;t w
  usu,y 2 requir$ 69clude ! proce$s f !
  4posi;n m9us any am.t pd 0! employee
  6acquire ^? "rs1 9 employ;t 9come 9 !
  ye> ( 4posi;n4
#b4 ,receipt 0an employee (a /ock op;n
  does n1 9 xf1 give rise 69come 9 ! h&s
  (! employee4 ,hav+ obta9$ s* a "r1 !
  employee w 2 3sid]$ 6rcv 9come f
  employ;t only :5 "o (! ev5ts describ$
  9 p>agraphs #g7#a77a71 7b71 7c71 7d71
  or 7e7 o3urs4 ,p>agraphs #g7#a77c7 &
  7d7 w only apply 69clude an
--------------------------------------#b
  am.t 9 ! 9come (! employee :5 !
  employee is alive4 ,o!rwise ! 9come w
  2 9clud$ 9 ! 9come (! p]son 6:om !
  op;n 0 transf]r$4
                                      #e
          ,9dividual c1ses 6be       a#b
         employee 7p>agraph #c7
    
#c4 ,pursuant 6subsec;n #g7#d71 if a
  p]son 0 an employee at ! "t ( rcvg a
  "r 6acquire %>es b subsequ5tly c1s$
  6be an employee at a "t prior 6!
  ex]cise or transf] ( t "r :5 ! value (
  any b5efit is det]m9$1 sec;n #g w
  n"e!.s apply 9 det]m9+ ! b5efit 6t
  p]son4

       ,:5 sec;n #g does n apply
             7p>agraph #d7
    
#d4 ,sec;n #g is n applica# if3
  --! b5efit 3f]r$ 0! /ock op;n agree;t
    0 .n rcvd 0r1son (! employee's
    employ;t2 or
  --an 9dividual 7o!r ?an a tru/ee act+
    "u ! direc;n (a corpor,n7 :o [ns
    %>es (a corpor,n agrees 6sell ^?
    %>es 6an employee ( t corpor,n1 ev5
    if t 9dividual is an (fic] or
    employee ( t corpor,n 7ref]r$     #f
             ,,it-#aac;,r#d          b#b
    6z 8! employ] corpor,n0 9 ? bullet97
    or ( ano!r corpor,n ) : ! employ]
    corpor,n does n d1l at >m's l5g?4
  
    ,h["e1 if an employee pr(it %>+ plan
    is /ructur$ z a pr(it %>+ plan b xs
    purpose is ! pur*ase or sale (
    tr1sury %>es (! employ] or (a
    corpor,n ) : ! employ] does n d1l at
    >m's l5g?1 sec;n #g w apply 6any (!
    employ]'s 3tribu;ns 6! plan t c
    r1sonably 2 3sid]$ 6h be5 us$
    6pur*ase ! tr1sury %>es4
  
      ,p>agraphs #g7#a77c71 7d7 &
           7e7 7p>agraph #e7
    
#e4 ,p>agraph #g7#a77c7 applies :5 "rs (
  an employee "u a /ock op;n agree;t
  2come ve/$ 9 a non->m's l5g? transf]ee
  :o has acquir$ %>es "u ! agree;t4 ,!
  am.t (! b5efit1 if any1 is ! di6];e 2t
  ! fair m>ket value (! %>es at ! "t !y
  >e acquir$ 0! non->m's l5g?         #g
             ,,it-#aac;,r#d          c#b
  transf]ee &! total (! am.t pd or paya#
  0t p]son 6! corpor,n =! %>es plus any
  am.t pd 0! employee 6acquire ^? "rs4
  ,h["e1 if ! employee 0 dec1s$ at ! "t
  ! %>es >e acquir$ 0! non->m's l5g?
  transf]ee1 any b5efit is deem$ 6be
  employ;t 9come (! non->m's l5g?
  transf]ee =! ye> ! %>es >e acquir$ 0!
  non->m's l5g? transf]ee4 ,p>agraph
  #g7#a77c7 applies 6a non-resid5t
  transf]ee if ! employee _h p]=m$ 8 or
  h] duties prim>ily 9 ,canada4

  ,a simil> deem$ b5efit rule applies "u
  p>agraph #g7#a77d74 ,if "rs ( an
  employee "u a /ock op;n agree;t 2come
  ve/$ 9 a p]son ) :om ! employee is n
  d1l+ at >m's l5g?1 & t p]son 7! non-
  >m's l5g? transf]ee7 subsequ5tly
  transf]s or 4poses (! "rs 6ano!r p]son
  7! >m's-l5g? transf]ee7 9 an >m's l5g?
  transac;n1 p>agraph #g7#a77d7 may
  require an am.t 6be 9clud$ 9 !
  employee's employ;t 9come 9 ! ye>   #h
             ,,it-#aac;,r#d          d#b
  (! 4posi;n4 ,! am.t (! b5efit1 if any1
  is3
    --! fair m>ket value (! 3sid],n rcvd
      0! non->m's l5g? transf]ee =! "rs
    ,m9us3
    --any am.t pd 0! employee = ^? "rs4
    
  ,h["e1 if ! employee 0 dec1s$ at ! "t
  ! "rs >e acquir$ 0! >m's l5g?
  transf]ee1 any b5efit is deem$ 6be
  employ;t 9come (! non->m's l5g?
  transf]ee =! ye> ! "rs 7 4pos$ ( 0!
  non->m's l5g? transf]ee4 ,? rule al
  applies 6a non-resid5t ": he or %e is
  ! non->m's l5g? transf]ee if !
  employee _h p]=m$ 8 or h] duties
  prim>ily 9 ,canada4

  ,if an employee [ns unex]cis$ "rs "u a
  /ock op;n agree;t immly 2f d1?1
  p>agraph #g7#a77e7 provides t a
  b5efit1 equal 6! fair m>ket value (!
  "rs immly af d1? less any am.t pd 0!
  employee 6acquire ! "rs1 is deem$   #i
             ,,it-#aac;,r#d          e#b
  6be rcvd z employ;t 9come 0! employee
  =! tax,n ye> 9 : ! employee di$4
  ,p>agraphs #g7#a77b71 7c71 & 7d7 d n
  apply if p>agraph #g7#a77e7 applies4

      ,agree;t 6sell or issue %>es
           7p>agraphs #f-ab7
    
#f4 ,an agree;t 6sell or issue %>es (!
  capital /ock ( an employ] corpor,n or
  (a corpor,n ) : x does n d1l at >m's
  l5g?1 z 3templat$ 0subsec;n #g7#a71 is
  ref]r$ 6in ? bullet9 z a 8/ock op;n
  agree;t40 ,! ^w 8issue0 m1ns 6deliv]
  unissu$ %>es (a corpor,n1 9clud+
  6deliv] unissu$ %>es = no m"ot>y
  3sid],n4 ,"!=e1 sec;n #g applies :5 an
  employ] corpor,n agrees 6sell or
  issue1 6an employee (! corpor,n or (a
  corpor,n ) : x does n d1l at >m's
  l5g?1 xs [n %>es1 or 6sell or h issu$
  ^? (a corpor,n ) : x does n d1l at
  >m's l5g?1 at less ?an fair m>ket
  value or = no m"ot>y 3sid],n4      #aj
             ,,it-#aac;,r#d          f#b
  ,if1 "u ! t]ms (! agree;t1 ! employ] &
  employee h n 3templat$ ! issu.e ( %>es
  &! ca% pay;t 0! employ] is a m1ns (
  -p5sat+ ! employee "? a 8phantom0 /ock
  plan1 sec;n #g wd n apply s9ce !
  employ] has n 8agre$ 6sell or issue
  %>es0 z /ipulat$ 9 t provi.n4 ,9
  g5]al1 a phantom /ock plan is a def]r$
  bonus >range;t 9 : units 7: may
  correspond 6! value ( %>es (! employ]
  corpor,n's %>es7 >e cr1t$ & giv5
  6employees4 ,! units ve/ 9 ! employees
  af a c]ta9 p]iod & pay;t is made at or
  af ! "t ( ve/+ bas$ on ! employee's
  numb] ( a3umulat$ units2 h["e1 "! is
  no actual %>e [n]%ip 0! employee4
#g4 ,sec;n #g applies ": a corporate
  employ] issues %>es 6an employee z a
  sal>y bonus or "u a /ock bonus plan4
  ,sec;n #g cd al apply 6a /ock bonus
  plan ": %>es


                                     #aa
             ,,it-#aac;,r#d           #c
  >e n 8issu$0 0a corpor,n b ! plan /
  3/itutes an agree;t 6sell or issue
  %>es1 z 3templat$ 0sec;n #g4
#h4 ,:5 a b5efit is deem$ 0subsec;n
  #g7#a7 6h be5 3f]r$ on an employee 0!
  sale or issue ( %>es1 p>agraph
  #g7#c77b7 provides t no corpor,n is
  5titl$ 6claim ! am.t (! b5efit z a
  deduc;n 9 -put+ xs 9come4 ,h["e1 a
  corpor,n may 2 a# 6claim a deduc;n 9
  c]ta9 circum/.es describ$ 9 p>agraph
  #aa 2l4
#i4 ,if an employee acquires %>es
  pursuant 6a /ock op;n agree;t1 !
  provi.ns ( : prohibit transf] (! %>es
  =a p]iod ( "t1 ! employee is 3sid]$ 6h
  8acquir$0 ! %>es )9 ! m1n+ ( sec;n #g4
  ,! value (! %>es is 3sid]$ 6be ! fair
  m>ket value ( id5tical %>es at ! "t (
  acquisi;n t h no trad+ re/ric;n less
  an appropriate 4c.t 9 respect (!
  re/ric;n4
#aj4 ,an employee :o ex]cises a /ock
  op;n & 5t]s 96an agree;t 6pay =!   #ab
             ,,it-#aac;,r#d          a#c
  %>es ov] an ext5d$ p]iod may or may n
  acquire ! %>es )9 ! m1n+ ( p>agraph
  #g7#a77a7 at ! "t ! op;n is ex]cis$4
  ,! date ( acquisi;n (! %>es 9 ^!
  circum/.es is a "q ( fact4 ,g5],y1
  acquisi;n w 2 3sid]$ 6h tak5 place :5
  title passes or1 if title rema9s )!
  v5dor z secur;y =! unpd bal.e1 :5 all
  ! 9cid5ts ( title 7s* z posses.n1 use1
  & risk7 pass 7see ! curr5t v].n (
  ,,it-#agj1 ,sale ( ,prop]ty--,:5
  ,9clud$ 9 ,9come ,-put,n74
#aa4 ,a key factor 9 det]m9+ : provi.n 9
  ! ,act applies 6a b5efit rcvd 0an
  employee "u a /ock op;n agree;t is
  :e!r ! employee or employ] elects
  6make or rcv a ca% pay;t 9 lieu ( %>es
  "u ! agree;t4

  ,":1 "u a /ock op;n agree;t1 an
  employ] elects 6pay ca% 9 lieu ( issu+
  %>es1 subsec;n #g7#a7 does n apply &!
  am.t ( ca% rcvd 0! employee is taxa#
  "u ei subsec;n #e7#a7 or           #ac
             ,,it-#aac;,r#d          b#c
  p>agraph #f7#a77a7 9 ! ye> ! pay;t is
  rcvd4 ,9 s* cases1 ! employee is n
  5titl$ 6a deduc;n "u p>agraph
  #aaj7#a77d7 & p>agraph #g7#c77b7 does
  n apply 6d5y ! employ] a deduc;n =!
  pay;t 2c no %>es wd h be5 sold or
  issu$ "u ! /ock op;n agree;t 6!
  employee or 6a p]son 9 :om !
  employee's "rs "u ! agree;t h 2come
  ve/$4

  ,": x is ! employee :o has ! "r 6*oose
  ca% 9/1d ( %>es1 p>agraph #g7#a77b7 w
  apply1 9 respect (! ca% rcvd 0!
  employee 9 satisfac;n (! employee's
  "rs "u ! plan4 ,! employee may 2
  5titl$ 6a deduc;n "u p>agraph
  #aaj7#a77d71 provid$ ! 3di;ns 9 t
  provi.n >e met4 ,9 ? case1 p>agraph
  #g7#c77b7 does n apply 6d5y ! employ]
  a deduc;n4
#ab4 ,sec;n #g applies only if ! "r
  6acquire %>es1 z 3f]r$ 0! agree;t1 is
  rcvd 9 respect (1 9 ! c\rse ( or   #ad
             ,,it-#aac;,r#d          c#c
  0virtue ( employ;t4 ,pursuant 6!
  def9i;ns ( 8employee0 & 8(fice0 9
  subsec;n #bdh7#a71 corporate directors
  >e 3sid]$ 6be employees4

  ,:5 /ock op;ns >e rcvd 0an employee :o
  is al a %>ehold]1 x is nec 6det]m9e if
  ! /ock op;n 0 grant$ 6! 9dividual 9 8
  or h] capac;y z %>ehold] or employee4
  ,x is a "q ( fact :e!r a %>ehold]/-
  employee rcvs a b5efit 0r1son (
  employ;t or 9 ! capac;y ( %>ehold]4 ,!
  acquisi;n ( %>es (! employ] corpor,n
  or ^? (a corpor,n ) : ! corpor,n does
  n d1l at >m's l5g?1 0! employee at
  less ?an ! fair m>ket value (! %>es
  pursuant 6a /ock op;n agree;t wd n
  norm,y 2 subject 6sec;n #g if !
  employee 0 alr an exi/+ %>ehold] &!
  /ock op;n 0 grant$ 6all %>ehold]s1
  9clud+ ^? :o >e n employees4


                                     #ae
        ,employee /ock op;ns (a      d#c
       ,canadian-3troll$ private
      corpor,n 7p>agraphs #ac-ad7
    
#ac4 ,subsec;n #g7#a.a7 modifies ! tim+
  (! 9come 9clu.n "u p>agraph #g7#a77a7
  ": a 8,canadian-3troll$ private
  corpor,n 7,,ccpc710 z def9$ 9 subsec;n
  #abe7#g71 agrees 6sell or issue %>es
  (! capital /ock ( ei3
  --! corpor,n2 or
  --a ,,ccpc ) : x does n d1l at >m's
    l5g?1
  
  6an employee (! corpor,n or (a ,,ccpc
  ) : x does n d1l at >m's l5g? &1 at !
  "t t is immly af ! agree;t 0 made1 !
  employee 0 d1l+ at >m's l5g? )3

  --! corpor,n2
  --! ,,ccpc1 ! %>e (! capital /ock ( :
    0 agre$ 6be sold 0! corpor,n2 &
  --! ,,ccpc 0: ! employee is employ$4
  
                                     #af
             ,,it-#aac;,r#d          e#c
  ,if a %>e is acquir$ af ,may #bb1
  #aihe1 0an employee & subsec;n
  #g7#a.a7 is applica#1 ! b5efit1 if
  any1 "u p>agraph #g7#a77a7 w n 2
  9clud$ 9 ! employee's 9come until !
  ye> 9 : ! employee 4poses ( or
  ex*anges ! %>e4 ,any ga9 a3ru+ on !
  %>e af x is acquir$ 0! employee is
  subject 6! capital ga9s rules4

  ,h["e1 z expla9$ 9 #ai 2l1 ! employee
  may !n 2 5titl$ 6a deduc;n 9 -put+
  taxa# 9come4 ,al1 see #ba 2l = an
  a4i;n 6! adju/$ co/ base (! %>e
  6det]m9e ! capital ga9 or loss on !
  %>e4

  ,if an employee acquir$ a %>e 2f ,may
  #bc1 #aihe1 & subsec;n #g7#a.a7 is
  applica#1 ! b5efit "u p>agraph
  #g7#a77a7 is n requir$ 6be 9clud$ 9 !
  employee's 9come at all un.s !
  employee 4pos$ (! %>e )9 two ye>s f !
  date ( xs acquisi;n1 &! 4posal     #ag
             ,,it-#aac;,r#d          f#c
  o3urr$ o!rwise ?an z a 3sequ;e (!
  employee's d1?4
--------------------------------------#d
#ad4 ,if a corpor,n is a ,,ccpc at ! "t
  ( xs agree;t 6sell or issue %>es1 z
  describ$ 9 #ac abv1 subsec;n #g7#a.a7
  w apply ev5 ?\< ! corpor,n has c1s$
  6be a ,,ccpc prior 6! issu.e (! %>es
  pursuant 6! agree;t4 ,subsec;n
  #g7#a.a7 w al apply ": ! employ]
  ,,ccpc _h agre$ 6issue %>es (a ,,ccpc
  ) : x does n d1l at >m's l5g? b t non-
  >m's l5g? ,,ccpc c1ses 6be a ,,ccpc 2f
  ! issu.e (! %>es 6! employee4

        ,ex*ange ( op;ns or %>es
           7p>agraphs #ae-ag7
    
#ae4 ,"u p>agraph #g7#a77b71 an employee
  is deem$ 6h rcvd a b5efit f employ;t 9
  ! tax,n ye> if he or %e has transf]r$
  or 4pos$ ( "rs "u a /ock op;n agree;t
  6a p]son ) :om ! employee 0 d1l+ at
  >m's l5g? & if ! proce$s f !       #ah
             ,,it-#aac;,r#d          a#d
  4posi;n exce$ ! am.t pd 0! employee =
  ^? "rs4 ,h["e1 subsec;n #g7#a.d7
  provides an excep;n 6? rule if "! is
  an ex*ange ( op;ns 0! taxpay] 7=
  example1 0r1son (a corporate
  reorganiz,n or capital re/ructur+7 &
  no economic advantage is deriv$ 0!
  taxpay] z a result (! ex*ange4 ,9 ord]
  = subsec;n #g7#a.d7 6apply1 all (!
  foll[+ 3di;ns h 6be met3
  7a7 ! taxpay] 4poses ( "rs "u a /ock
    op;n agree;t1 describ$ 9 subsec;n
    #g7#a7 or 7#a.a71 6acquire %>es (!
    employ] corpor,n or (a corpor,n ) :
    ! employ] corpor,n does n d1l ) at
    >m's l5g?2
  7b7 ! taxpay] rcvs no 3sid],n 9
    ex*ange =! old "rs o!r ?an new "rs
    "u ! new /ock op;n agree;t ) "o (!
    foll[+ corpor,ns 6acquire %>es ( "o
    (! foll[+ corpor,ns3
    7;i7 ! employ] corpor,n1
    7;ii7 a corpor,n ) : ! employ]
      corpor,n does n d1l at >m's    #ai
             ,,it-#aac;,r#d          b#d
      l5g? immly af ! 4posi;n (! old
      "rs1
    7;iii7 ! newly amalgamat$ or m]g$
      corpor,n =m$ 0! employ] corpor,n &
      "o or m o!r corpor,ns1 or
    7;iv7 a corpor,n ) : ! newly
      amalgamat$ or m]g$ corpor,n does n
      d1l at >m's l5g? immly af !
      4posi;n (! old "rs2 &
  7c7 ! fair m>ket value (! new %>es
    immly af ! 4posi;n (! old "rs .m9us
    ! am.t paya# 0! taxpay] "u ! new
    /ock op;n agree;t 6acquire ! new
    %>es .does .n .exce$ ! fair m>ket
    value (! old %>es immly 2f ! 4posi;n
    .m9us any am.t paya# 0! taxpay]
    6acquire ! old %>es "u ! old /ock
    op;n agree;t4
  
  ,if ! 3di;ns describ$ abv >e met3
    --! taxpay] is deem$ n 6h 4pos$ (!
      old /ock op;n & n 6h acquir$ ! new
      /ock op;n2
                                     #bj
             ,,it-#aac;,r#d          c#d
    --! new /ock op;n is deem$ 6be !
      same z &a 3t9u,n (! old /ock op;n2
      &
    --! corpor,n1 ref]r$ 6in 7b77;ii71
      7;iii71 or 7;iv7 abv1 is deem$ 6be
      ! same corpor,n z &a 3t9u,n (!
      employ] corpor,n4
  ,subsec;n #g7#a.d7 applies =! purposes
  (! p>agraph #aaj7#a77d7 deduc;n4
#af4 ,subject 6! -;ts 9 #ae abv1 any
  funda;tal *ange 9 an employee /ock
  op;n agree;t is 3sid]$ 63/itute !
  cre,n (a new /ock op;n agree;t & ?us
  causes a 4posi;n (! employee's "rs "u
  ! old /ock op;n4 ,? may result 9 a
  b5efit 6be 9clud$ 9 ! employee's
  employ;t 9come pursuant 6p>agraph
  #g7#a77b74
#ag4 ,subsec;n #g7#a.e7 provides t !
  provi.ns ( p>agraph #g7#a77a7 &
  #aaj7#a77d7 w n apply 6! 4posi;n (
  %>es (a ,,ccpc 6: ! provi.ns (
  subsec;n #g7#a.a7 apply ": ! %>es >e
  ex*ang$ = new %>es4 ,subsec;n      #ba
             ,,it-#aac;,r#d          d#d
  #g7#a.e7 applies :5 ! foll[+ 3di;ns >e
  met3
  7a7 ! taxpay] 4poses ( or ex*anges
    %>es (a ,canadian corpor,n t 7
    acquir$ "u a /ock op;n agree;t
    describ$ 9 subsec;n #g7#a.a72
  7b7 ! taxpay] rcvs no 3sid],n =!
    4posi;n or ex*ange (! old %>es o!r
    ?an new %>es f3
    7;i7 ! employ] corpor,n1
    7;ii7 a corpor,n ) : ! employ]
      corpor,n does n d1l at >m's l5g?
      immly af ! 4posi;n or ex*ange (!
      old %>es1
    7;iii7 ! newly amalgamat$ or m]g$
      corpor,n1 or
    7;iv7 a corpor,n ) : ! newly
      amalgamat$ or m]g$ corpor,n does n
      d1l at >m's l5g? immly af !
      4posi;n or ex*ange (! old %>es2 &
  7c7 ! fair m>ket value (! new %>es
    immly af ! 4posi;n or ex*ange is n m
    ?an ! fair m>ket value (! old %>es
    immly 2f ! 4posi;n or ex*ange4   #bb
             ,,it-#aac;,r#d          e#d
  ,if ! 3di;ns describ$ abv >e met3
    --! taxpay] is deem$ n 6h 4pos$ ( or
      ex*ang$ ! old %>es & n 6h acquir$
      ! new %>es2
--------------------------------------#e
    --! new %>es >e deem$ 6be ! same z
      &a 3t9u,n (! old %>es1 &! new %>es
      >e deem$ 6h be5 issu$ "u ! same
      /ock op;n agree;t1 if any1 z ! old
      %>es2 &
    --! corpor,n t issu$ ! new %>es is
      deem$ 6be ! same corpor,n z &a
      3t9u,n (! corpor,n t issu$ ! old
      %>es4
    
          ,deduc;n "u p>agraph
       #aaj7#a77d7 7p>agraph #ah7
    
#ah4 ,if an employee has be5 grant$ a
  /ock op;n 0a corpor,n & has acquir$
  %>es "!"u1 ! b5efit1 if any1 : !
  employee is1 0virtue ( subsec;n
  #g7#a71 deem$ 6h rcvd m/ 2 9clud$ 9 !
  employee's 9come =! tax,n ye> 9    #bc
             ,,it-#aac;,r#d          a#e
  : ! %>es 7 acquir$1 or 9 ! tax,n ye> 9
  : !y >e 4pos$ ( if subsec;n #g7#a.a7
  applies4

  ,"u p>agraph #aaj7#a77d71 ! taxpay]
  may1 9 -put+ taxa# 9come = t tax,n
  ye>1 deduct "o-qu>t] (! am.t (!
  subsec;n #g7#a7 b5efit if ! foll[+
  3di;ns >e met3
  7a7 ! employ] corpor,n or a corpor,n n
    d1l+ at >m's l5g? )! employ]
    corpor,n is ! corpor,n agree+ 6sell
    or issue ! %>es2
  7b7 ! %>es issu$ or sold >e prescrib$
    %>es1 z describ$ 9 sec;n #fbjd (!
    ,regul,ns1 at ! "t ( _! issue or
    sale2
  7c7 ! am.t paya# 0! taxpay] 6acquire !
    %>es "u ! /ock op;n agree;t is n
    less ?an ! excess (! fair m>ket
    value (! %>es at ! "t ! /ock op;n
    agree;t 0 made ov] any am.t pd 0!
    taxpay] 6acquire ! "rs1 .&
                                     #bd
             ,,it-#aac;,r#d          b#e
  7d7 immly af ! /ock op;n is grant$1 &
    ": ! op;n 0 acquir$ 0! taxpay] z a
    result ( "o or m 4posi;ns 6:
    subsec;n #g7#a.d7 appli$1 ! taxpay]
    is d1l+ at >m's l5g? )! corpor,ns
    9volv$1 7i4e4 ! corpor,n t agre$
    6sell or issue ! %>es1 ! corpor,n 9
    respect ( ^: %>es ! agree;t 0 made
    &! employ] corpor,n74
  
  ,) respect to 7c7 abv1 ! am.t paya# 0!
  employee 6acquire ! %>es "u ! /ock
  op;n agree;t is det]m9$ )\t tak+
  96a3.t any =eign curr5cy ex*ange ga9s
  or losses o3urr+ 9 ! p]iod 2t ! "t !
  op;n is grant$ &! "t ! op;n is ex]cis$
  s t fluctu,ns 9 =eign curr5cy d n
  a6ect an employee's eligibil;y =!
  p>agraph #aaj7#a77d7 deduc;n4 ,h["e1 9
  det]m9+ ! fair m>ket value ( %>es =!
  purpose ( apply+ p>agraph #aaj7#a77d71
  c]ta9 *anges 9 %>e /ructures1 s* z
  /ock splits & /ock divid5ds t o3ur af
                                     #be
             ,,it-#aac;,r#d          c#e
  ! /ock op;n is grant$1 >e tak5 96a3.t1
  pursuant 6subsec;n #aaj7#a.e74

  ,if subsec;n #g7#a.d7 applies 7see #ae
  abv7 9 respect (a new op;n acquir$ on
  an ex*ange1 ! fair m>ket value te/ 9
  7c7 abv is 3sid]$ 6be met = t op;n ":
  ! ex]cise price "u ! orig9al op;n 0 no
  less ?an ! fair m>ket value (! %>es :5
  ! orig9al op;n 0 grant$ m9us any am.t
  pd 0! employee 6acquire ! "rs "u !
  orig9al op;n4 ,9 o!r ^ws1 a taxpay] wd
  n 2 preclud$ f a deduc;n "u p>agraph
  #aaj7#a77d7 solely 2c "! 0 an 9cr1se 9
  ! fair m>ket value (! %>es 2t ! "t at
  : ! orig9al op;n 0 grant$ &! "t (!
  capital re/ructur+ or corporate
  reorganiz,n4 ,9 a4i;n1 if subsec;n
  #g7#a.d7 applies 6an ex*ange "u : "rs
  >e acquir$1 ! taxpay] has 6be d1l+ at
  >m's l5g? )! corpor,ns 9volv$ 7see 7d7
  abv7 :5 ! orig9al /ock op;n 0 grant$ &
  at ! "t immly af ea* ex*ange4
                                     #bf
             ,,it-#aac;,r#d          d#e
  ,p>agraph #aaj7#a77d7 w apply on !
  4posi;n (a /ock op;n xf provid$ t3
  --! /ock op;n meets ! require;ts set \
    9 7a71 7c71 & 7d7 abv2 &
  --! %>es wd h be5 prescrib$ %>es1 z
    describ$ 9 sec;n #fbjd (! ,regul,ns1
    if !y _h be5 issu$ or sold 6!
    taxpay] at ! "t (! 4posi;n (! /ock
    op;n4
  
          ,deduc;n "u p>agraph
     #aaj7#a77d4#a7 7p>agraph #ai7
    
#ai4 ,if a taxpay]3
  7a7 has be5 grant$ a /ock op;n 0a
    ,,ccpc 9 circum/.es s* t subsec;n
    #g7#a.a7 applies 7see #ac abv71
  7b7 has acquir$ a %>e pursuant 6t /ock
    op;n1
  7c7 has 4pos$ ( or ex*ang$ t %>e1 &
  7d7 is1 0virtue ( subsec;n #g7#a.a71
    deem$ "u subsec;n #g7#a71 6h rcvd a
    b5efit : 0 9clud$ 9 ! taxpay]'s
                                     #bg
             ,,it-#aac;,r#d          e#e
    9come =! tax,n ye> 9 : ! %>e 0 4pos$
    ( or ex*ang$1
  
  ! taxpay] may1 9 -put+ taxa# 9come =!
  tax,n ye> ref]r$ 6in 7d7 abv1 deduct
  an am.t "u p>agraph #aaj7#a77d4#a7
  equal 6"o-qu>t] (! b5efit provid$ t3

  7e7 ! %>e 0 n 4pos$ ( or ex*ang$1 o!r
    ?an z a 3sequ;e (! taxpay]'s d1?1 )9
    two ye>s af ! date t ! taxpay]
    acquir$ x1 &
  7f7 no am.t has be5 deduct$ "u
    p>agraph #aaj7#a77d7 9 respect (!
    b5efit 9 -put+ ! taxpay]'s taxa#
    9come =! ye>4
--------------------------------------#f
  ,if ! %>es >e 4pos$ ( )9 ! two-ye>
  p]iod ref]r$ 6in 7e7 abv1 a deduc;n "u
  p>agraph #aaj7#a77d4#a7 is n availa#
  6! taxpay]4 ,=! purpose (! p>agraph
  #aaj7#a77d4#a7 deduc;n1 ! %>es d n h
  6be prescrib$ %>es z set \ 9 sec;n
  #fbjd (! ,regul,ns4                #bh
             ,,it-#aac;,r#d          a#f
  ,if a deduc;n is n availa# "u p>agraph
  #aaj7#a77d4#a71 a deduc;n may / 2
  availa# "u p>agraph #aaj7#a77d71 if !
  3di;ns (! latt] provi.n >e met 7see
  #ah abv74

     ,g5]al -;ts 7p>agraphs #bj-ba7
    
#bj4 ,9 det]m9+ ! adju/$ co/ base ( %>es
  acquir$ "u a /ock op;n agree;t1 ! am.t
  ( any b5efit 9clud$ 9 -put+ 9come "u
  sec;n #g 9 respect (! acquisi;n (!
  %>es is a4$1 "u p>agraph #ec7#a77j71
  6! price actu,y pd 0! employee =! %>es
  6det]m9e _! adju/$ co/ base =! purpose
  ( -put+ any capital ga9 or loss on !
  4posi;n (! %>es4 ,? a4i;n 6! adju/$
  co/ base (! %>es is made ev5 ": a
  deduc;n is tak5 0! employee pursuant
  6! provi.ns ( p>agraph #aaj7#a77d7 or
  7d4#a74
#ba4 ,-mis.ns1 brok]age fees or transf]
  taxes t wd 2 paya# on a 4posi;n ( %>es
  >e .n tak5 96a3.t 9 m1sur+ !       #bi
             ,,it-#aac;,r#d          b#f
  am.t ( any b5efit "u sec;n #g b !y d1
  ( c\rse1 5t] 96! calcul,n (! capital
  ga9 or loss1 z ! case may be1 on !
  actual 4posi;n (! %>es 0! employee4

      ,non-resid5ts 7p>agraph #bb7
    
#bb4 ,9 ! situ,n ": an 9dividual :o is a
  ,canadian resid5t is grant$ a /ock
  op;n 0virtue ( 8 or h] employ;t 9
  ,canada )! employ] corpor,n1 & !n !
  9dividual c1ses 6be a resid5t (
  ,canada1 ! foll[+ applies3
  7a7 ,pursuant 6subp>agraph
    #abh.a7#d77b77;vi71 ! 9dividual is n
    deem$ 6h 4pos$ ( 8 or h] "rs "u a
    /ock op;n at ! "t ! 9dividual 2comes
    a non-resid5t & "!=e sec;n #g does n
    apply 6any unex]cis$ op;ns at t "t4
  7b7 ,z a non-resid5t1 ! 9dividual is
    taxa# 9 ,canada "u subsec;n #b7#c7 z
    det]m9$ "u subp>agraph
    #aae7#a77a77;i7 79come f employ;t7 9
    respect ( any b5efit rcvd :5 !   #cj
             ,,it-#aac;,r#d          c#f
    /ock op;n is ex]cis$1 2c ! employ;t
    = : ! /ock op;n 0 grant$ 0 p]=m$ 9
    ,canada4
  
  ,) respect to 7b7 abv1 ! non-resid5t
  9dividual may 2 5titl$ 6relief f
  ,canadian 9come tax,n "u a relevant
  tax 3v5;n 2t ,canada &! 9dividual's
  c.try ( resid;e at ! "t ! /ock op;n is
  ex]cis$4 ,9 a4i;n1 a non-resid5t fil+
  a return "u subsec;n #aae7#a7 may 2
  5titl$ 6a deduc;n "u p>agraph
  #aaj7#a77d7 or 7d4#a7 9 -put+ taxa#
  9come4

           ,%>es held 0tru/ee
             7p>agraph #bc7
    
#bc4 ,a /ock op;n agree;t may provide =
  %>es 6be held 9 tru/1 :e!r absolutely1
  3di;n,y1 or 3t+5tly1 = an employee
  until c]ta9 3di;ns >e met 0! employee4
  ,! employee is deem$ 0subsec;n #g7#b71
  =! purposes ( t provi.n &          #ca
             ,,it-#aac;,r#d          d#f
  p>agraphs #aaj7#a77d7 & 7d4#a71
  6acquire ! %>es at ! "t ! tru/ -m;es
  6hold ! %>es =! employee1 & acly1 a
  b5efit 6! employee may >ise "u
  subsec;n #g7#a7 at t "t4 ,if !
  employee does n meet ! 3di;ns "u !
  agree;t &! %>es held 0! tru/ d n ve/ 9
  ! employee1 ! /ock op;n agree;t may
  require t ! %>es 2 return$ 6! corpor,n
  0! tru/ee & subsec;n #h7#ab7 may
  apply4 ,if all ! require;ts ( subsec;n
  #h7#ab7 >e met1 ! employee may 2
  5titl$ 6deduct1 =! tax,n ye>1 f 8 or
  h] employ;t 9come1 an am.t equal to3
  --! subsec;n #g7#a7 deem$ b5efit =!
    employee =! tax,n ye> or a prior
    tax,n ye> 9 respect ( ^? %>es
  ,m9us
  --any am.ts deduct$ 0! employee "u
    p>agraphs #aaj7#a77d7 or 7d4#a7 =!
    tax,n ye> or a prior tax,n ye> 9
    respect ( ^? %>es4
  
                                     #cb
             ,,it-#aac;,r#d          e#f
  ,any (! employee's ga9 or loss f !
  4posi;n (! %>es is deem$ 6be nil4
  ,sec;n #hd does n apply 6deem a
  divid5d 6h be5 rcvd 9 respect (!
  4posi;n (! %>es4

          ,3v]ti# pref]r$ %>es
             7p>agraph #bd7
    
#bd4 ,3v]ti# pref]r$ %>es >e pref]r$
  %>es (a corpor,n t >e 3v]ti# 6-mon
  %>es (! corpor,n4 ,3v]ti# pref]r$ %>es
  9clude =w>d "picipat+ %>es4 ,=w>d
  "picipat+ %>es >e g5],y ^? %>es (a
  sep>ate class (a corpor,n t >e pur*as$
  0! 9dividual = fair m>ket value
  3sid],n4 ,! =w>d "picipat+ %>es derive
  mo/ ( _! value f _! 3v]tibil;y 96-mon
  %>es (! corpor,n4

  ,if an employee has acquir$1 "u an
  employee -p5s,n plan1 3v]ti# pref]r$
  %>es (! employ] corpor,n or (a
  corpor,n ) : ! employ] corpor,n    #cc
             ,,it-#aac;,r#d          f#f
  does n d1l at >m's l5g?1 sec;n #g
  applies :5 ! pref]r$ %>es >e sold or
  3v]t$ 6-mon %>es4 ,an employ;t b5efit
  may >ise "u subsec;n #g7#a7 if !
  employee ex]cises ! 3v].n op;n (!
  pref]r$ %>es 6acquire ! -mon %>es &!
  fair m>ket value (! -mon %>es on t
  date exce$s any am.t pd 0! employee
  6acquire ! pref]r$ %>es4 ,subsec;n
  #g7#a7 wd al apply if ! employee sells
  ! pref]r$ %>es &! proce$s f ! 4posi;n
  (! pref]r$ %>es exce$ any am.t pd 0!
  employee =! %>es4 ,subsec;n #g7#a7
  does n apply 6! 3v].n or sale ( 3v]ti#
  pref]r$ %>es1 o!r
--------------------------------------#g
  ?an =w>d "picipat+ %>es1 if ! %>es 7
  issu$ 2f ,decemb] #a1 #aiid1 z "p ( an
  employee -p5s,n package t 0 9 place
  0,augu/ #ca1 #aiid4

  ,if y h any -;ts ab matt]s 4cuss$ 9 ?
bullet91 pl1se s5d !m to3
                                     #cd
             ,,it-#aac;,r#d          a#g
  ,director1 ,busi;s & ,public,ns
    ,divi.n
  ,9come ,tax ,rul+s & ,9t]pret,ns
    ,directorate ,policy & ,legisl,n
    ,bran*
  ,rev5ue ,canada
  #be ,ni*olas ,/reet
  ,ottawa ,,on ,k#a;,a #j;,l#h















                                     #ce
         ,explan,n ( ,*anges =        #h
          ,9t]pret,n ,bullet9
        ,,it-#aac;,r#d ,b5efits
       6,employees--,/ock ,op;ns
    
               ,9troduc;n
    
  ,! purpose (! ,explan,n ( ,*anges is
6give ! r1sons =! revi.ns 6an 9t]pret,n
bullet94 ,x \tl9es revi.ns t we h made z
a result ( *anges 6! law1 z well z
*anges reflect+ new or revis$ de"p;tal
9t]pret,ns4

                ,ov]view
    
  ,9t]pret,n bullet9 ,,it-#aac;,r#d d1ls
)! rules = det]m9+ ! b5efit deriv$ f
ex]cis+ or 4pos+ ( an employ;t-relat$
/ock op;n agree;t &! deduc;n all[$ "u
p>agraph #aaj7#a77d71 9 -put+ taxa#
9come1 if c]ta9 3di;ns >e met1 ( "o-
qu>t] (! /ock op;n b5efit 9clud$ 9
calculat+ 9come f employ;t if an
employee ex]cises or 4poses (a       #cf
             ,,it-#aac;,r#d          a#h
prescrib$ %>e or relat$ /ock op;n4 ,!
deduc;n all[$ "u p>agraph #aaj7#a77d4#a7
) respect 6employee /ock op;ns ( an
employ] ,canadian-3troll$ private
corpor,n1 or (a ,canadian-3troll$
private corpor,n ) : x does n d1l at
>m's l5g?1 is al 4cuss$4
  ,! revi.ns 6,,it-#aac;,r#c dat$
,novemb] #cj1 #aihg1 7 "utak5 6reflect
am5d;ts 6! ,9come ,tax ,act 0,s4,c4
#aiid1 c4 #g1 ,sch4 ,,ii 7#aiia1 c4 #di
--=m]ly ,bill ;,c-#ah71 0,s4,c4 #aiid1
c4 #ba 7=m]ly ,bill ;,c-#bg71 & 0,s4,c4
#aihh1 c4#ee 7=m]ly ,bill ;,c-#aci74
  ,! 3t5ts ( ? bullet9 >e n a6ect$ 0any
draft legisl,n rel1s$ 2f ,july #d1
#aiif4

      ,legislative & ,o!r ,*anges
    
  ,p>agraph #a 7replaces =m] p>agraph
#a7 provides g5]al -;ts on ! taxa#
b5efit "u sec;n #g 6an employee "u an
employ;t-relat$ /ock op;n plan &     #cg
             ,,it-#aac;,r#d          b#h
9corporates "s (! -;ts f ! =m] ,summ>y
>ea4 ,p>agraph #a reflects ! am5d;t
6p>agraph #g7#a77a71 af #aihg1 :
recognizes t ! am.t (! b5efit o!rwise
calculat$ "u ? provi.n is 6be reduc$
0any am.t pd 0! employee 6acquire ! "r
6acquire ! %>es "u ! /ock op;n agree;t 9
a4i;n 6any am.t pd or paya# 0! employee
=! %>es4
  ,p>agraph #b 7replaces =m] p>agraph
#d71 : d1ls )! taxa# b5efit 6an employee
>is+ "u an employ;t-relat$ /ock op;n1 is
*ang$ 6reflect ! a4i;n ( p>agraph
#g7#a77e71 applica# 6d1?s o3urr+ af
,july #ac1 #aiij4
  ,p>agraphs #c & #d 9corporate -;ts f
=m] p>agraph #a4
  ,p>agraph #e provides a brief explan,n
( p>agraphs #g7#a77c71 7d71 & 7e74 ,!
4cus.n ( p>agraphs #g7#a77c71 7d71 & 7e7
reflect ! am5d;ts 6^? provi.ns1 af
#aihg1 : recognizes t ! am.t (! b5efit
o!rwise calculat$ "u ^? respective
provi.ns is 6be reduc$ 0any am.t     #ch
             ,,it-#aac;,r#d          c#h
pd or paya# 0! employee =! %>es or ! "r
6acquire ! %>es1 z ! case may be4 ,9
a4i;n1 p>agraph #e reflects ! a4i;n (
p>agraph #g7#a77e71 relat+ 6! taxa#
b5efit 6an employee :o holds unex]cis$
/ock op;ns "u an employ;t-relat$ /ock
op;n plan at ! "t ( d1?1 applica# 6d1?s
o3urr+ af ,july #ac1 #aiij4
  ,p>agraph #f 7replaces =m] p>agraph
#b71 : 4cusses ! m1n+ ( 8agree;t 6sell
or issue %>es10 is exp&$ 6briefly expla9
:e!r sec;n #g applies 6b5efits pd 6an
employee "u an employ;t-relat$ 8phantom0
/ock plan4
  ,p>agraph #g 7replaces =m] p>agraph
#c7 cl>ifies ! ,de"p;t's posi;n reg>d+ a
/ock bonus plan ": %>es >e n issu$ 0!
employ] corpor,n4
  ,p>agraph #aa 7replaces =m] p>agraph
#h7 is exp&$ 6expla9 ! tax,n ( b5efits
": ! employee has ! op;n 6*oose a ca%
pay;t 9 lieu ( %>es "u a /ock op;n
agree;t4
                                     #ci
             ,,it-#aac;,r#d          d#h
  ,p>agraph #ab 7replaces =m] p>agraph
#i7 cl>ifies :e!r sec;n #g applies if !
employee is al a %>ehold] (! employ]
corpor,n4
  ,p>agraph #ac 7replaces =m] p>agraph
#ab71 relat+ 6employee /ock op;ns (a
,canadian-3troll$ private corpor,n
7,,ccpc71 reflects a *ange 6! ref];e 6!
def9i;n (a 8,canadian-3troll$ private
corpor,n0 9 subsec;n #abe7#g71 =m]ly
3ta9$ 9 p>agraph #abe7#g77b74
  ,p>agraph #ad 7replaces =m] p>agraph
#ac7 is revis$ 6cl>ify t subsec;n
#g7#a.a7 al applies ": ! employ]
corpor,n has agre$ 6issue ! %>es (a
,,ccpc ) : x does n d1l at >m's l5g? b !
non->m's l5g? corpor,n c1ses 6be a
,,ccpc 2f ! %>es >e issu$4
  ,p>agraph #ae 7replaces =m] p>agraph
#aj7 reflects ! am5d;t 6p>agraph
#g7#a.d7 = #aihh & subsequ5t tax,n ye>s1
: ext5ds ! rollov] tr1t;t = ex*anges (
op;ns o3urr+ z a result ( m]g]s &
amalgam,ns 6any type ( corporate     #dj
             ,,it-#aac;,r#d          e#h
reorganiz,n or capital re/ructur+ z l;g
z c]ta9 3di;ns >e met4 ,! 4cus.n reg>d+
! ,de"p;t's posi;n 2f #aihe has be5
delet$4
  ,p>agraph #af 7replaces =m] p>agraph
#aa7 has be5 updat$ 6reflect ! deci.n (!
c\rts 9 ,ronald ,j4 ,wiebe & ,ray ,ba/i5
v4 ,! ,que51 #hg ,,dtc #ejfh1 ,7#aihg7'
#a ,c4,t4,c4 #ade4 ,? deci.n p]ta9s 6!
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is grant$ &! "t (! corporate reorganiz,n
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tru/ee 9 tru/ = employees "u an
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#h7#ab74
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subsec;n #g7#a7 if an employee has
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place 0,augu/ #ca1 #aiid4 ,! ,de"p;t's
posi;n reg>d+ =w>d "picipat+ %>es is
e6ective ,janu>y #aiib4



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