A new type of employee ownership comes at a time when the country is facing a wave of baby boomer entrepreneurs nearing retirement and an increased focus on strengthening the national economy in the face of a trade war with the U.S.

Different types of employee ownership have existed in Canada for decades, but in 2024, the federal government amended the Income Tax Act to introduce a new option called an employee ownership trust (EOT).

  • sbv@sh.itjust.worksEnglish
    31·
    1 day ago

    The lede is buried:

    For the companies considering becoming an EOT, time is of the essence. The federal government offers a tax break for owners who sell their businesses to employees, but the incentive runs out at the end of this year.

    Without the tax incentive, the future of EOTs in Canada is uncertain.

    This kind of ownership model sounds awesome. It’s too bad the feds are killing the incentive.

    • GreenBeard@lemmy.caEnglish
      10·
      23 hours ago

      Well, yes. To be fair, that doesn’t mean you can’t still have an EOT, it just means that the founder/owner(s) will face even more financial barriers to doing the right thing for their employees and community, but it’s still possible. Letting your MPs know that you support renewing this incentive and possibly adding additional incentives might actually be effective in this case.