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ARTICLE · 06 MARCH 2025

Charting A New Course For Corporate Succession: Employee Ownership Trusts (EOT)

MLT Aikins LLP
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While this may be an appropriate avenue for some Manitoba companies, for other companies, employee ownership trusts (EOT) offer an effective solution for succession planning. This article sets out how to qualify as an EOT and take advantage of the tax incentives and other benefits, including up to a $10-million capital gains exemption.

CanadaTax
Desiree Katz
Desiree Katz
Kyle Mirecki
Kyle Mirecki
Suraj Lakhi
Suraj Lakhi
Justin Papoff
Justin Papoff
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We recently published an article on the Employee Share Purchase Tax Credit in Manitoba, implemented by the Government of Manitoba to encourage, address and facilitate succession planning for Manitoba small businesses.

While this may be an appropriate avenue for some Manitoba companies, for other companies, employee ownership trusts (EOT) offer an effective solution for succession planning. This article sets out how to qualify as an EOT and take advantage of the tax incentives and other benefits, including up to a $10-million capital gains exemption.

Exit sign for business owners

As recently reported by the Canadian Federation of Independent Business, succession planning is a top of mind issue for Canadian business owners:

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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