Canadians for Fair and Equitable Taxation (CFET) is a growing group of ordinary hard-working Canadians who have seen their lives or those of friends and family severely impacted by the government taxing people on income they did not realize, aka phantom income.
The situation easily arises because of an oversight in the tax law that treats paper gains on the exercise of stock options and employee stock purchase plans as employment income yet the real loss from the sale of those same shares as a capital loss, thus not offsetting the deemed employment income.
As a simple example, an employee exercises stock options at $15 when the stock is at $115. He is deemed to have an employment income of $100. He then holds onto the shares and sells them, as the stock tanks for $15. He now has a capital loss of $100 but he cannot use that to offset the employment income so he ends up being asked to pay tax on $100 he never really made!
This situation has already caused people to remortgage their houses, cash in their RRSPs, and be otherwise very negatively financially impacted.
The purpose of CFET is to raise awareness of this insidious tax issue, to allow people who are impacted to network and to lobby the government to change the law in the spirit of simple fairness.
Join the protest!!!
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