Employee ownership trusts: A new opportunity for succession planning
Tax AlertThe federal government’s proposals to introduce employee ownership trusts (EOTs) presents a new succession planning opportunity.

Updated: March 27, 2025
Taxpayers should plan for the capital gains inclusion rate to stay the same at 50%. The 2024 federal budget proposed an increase of the capital gains inclusion rate to 66.67% (from 50%) effective June 25, 2024, amongst other measures. However, given the prorogation of parliament between January 6 and March 24, 2025, the future of this proposed change has been uncertain.
In the run-up to the federal election slated for April 28, 2025, the leaders of the Liberal Party of Canada and the Conservative Party of Canada have both stated that they will not be reintroducing this proposed measure; therefore, it likely won’t be enacted into law.
If you need additional guidance on how this will impact your current or future tax planning, contact your local advisor or reach out to us here.
Disclaimer
The information contained herein is general in nature and is based on proposals that are subject to change. It is not, and should not be construed as, accounting, legal or tax advice or an opinion provided by Doane Grant Thornton LLP to the reader. This material may not be applicable to, or suitable for, specific circumstances or needs and may require consideration of other factors not described herein.
The federal government’s proposals to introduce employee ownership trusts (EOTs) presents a new succession planning opportunity.
Prime Minister Mark Carney announces support for Canada’s lumber industry citing heavy reliance on US exports and vulnerability to trade policies.
Draft legislation effective Jan 29, 2026 expands NPO filing with CRA; smaller NPOs will file a new short-form return.
Amendments to the Select Luxury Items Tax Act were enacted on March 26, 2026 that remove the luxury tax on aircraft and vessels, effective November 5, 2025.
Get the latest information in your inbox.
Subscribe to receive relevant and timely information and event invitations.