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My company US publicly traded and issues RSU's in place of pension contributions. These RSU's vest over a number of years where tax (shares sold) is remitted to CRA as part of the vesting process. In past years I have been allowed to claim a deduction under paragraph 110(1)(d) of the Income Tax Act. However, in 2017 my employer now says this deduction is no longer available to me. They are stating rule changes for 2017 that now disallow the RSU's and only now allow the deduction for use with stock options. Since we have very few employees in Canada and my company regularly makes mistakes WRT Canada employment I wanted to verify if in fact the rules for this have changed for 2017. Comments welcome.
Hi Paul, RSUs are not the same as employee stock options. When RSUs vest, the vested amount is included in your income (T4) and subject to payroll tax. They are not eligible for the 110(1)(d) deduction.