Business owners could see big tax breaks from Ottawa’s employee ownership trust changes
The Canadian government is proposing to make tax breaks for employee ownership trusts permanent, which could benefit business owners selling to these trusts. The changes aim to incentivize long-term planning for business succession, as many owners are looking to exit their businesses in the coming years. This move could provide significant tax savings and alternative succession options for entrepreneurs.
- ▪The exemption on the first $10-million of capital gains from selling to an employee ownership trust will be made permanent.
- ▪76 percent of business owners plan to exit their businesses in the next decade, but only 9 percent have a succession plan.
- ▪Selling to an employee ownership trust offers tax benefits, including the potential to stack exemptions for greater savings.
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Open this photo in gallery:The spring economic update, which Finance and National Revenue Minister Francois-Philippe Champagne delivered in the House of Commons on April 28, proposed changes to the rules for employee ownership trusts.Sean Kilpatrick/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountBusiness owners could unlock significant tax savings if they sell their business to an employee ownership trust (EOT) now that Ottawa is making the regime’s key tax break permanent.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
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