If you want to issue shares of your existing business to an employee, it may make sense to do it through an employee stock option plan as, generally, employees will pay less tax on the benefit that they would otherwise have to claim. The figure below sums up the tax that an employee will have to pay under the Income Tax Act (Canada) when he or she disposes of the shares issued to him or her under the plan:
(c) Christian Weisenburger Law, Inc.
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