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ARTICLE · 30 APRIL 2026

Ten Tax Takeaways From Canada's Spring Economic Update 2026

Borden Ladner Gervais LLP
Borden Ladner Gervais LLP
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Borden Ladner Gervais LLP

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The Economic Update recognizes that both the charitable sector and non-governmental organizations are an important driver for the Canadian economy, create well-paying jobs, and supplement the social safety net.

CanadaTax
Pamela Cross
Pamela Cross
Steve Suarez
Steve Suarez
Joelle Kabouchi
Joelle Kabouchi
Tony Zhang
Tony Zhang
Yifei Yang
Yifei Yang
Jingcai Ying
Jingcai Ying
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On April 28, 2026, The Honourable François-Philippe Champagne, minister of Finance and National Revenue, presented Canada's spring economic update 2026 (Economic Update). BLG is pleased to highlight its key income tax proposals.

Business tax measures

1. Employee ownership trust capital gains exemption: Made permanent

Employee ownership trusts (EOTs) provide a business succession alternative for many private company owners approaching retirement. Although introduced in 2023, the legislation permitting EOTs was not passed into law until June 2024.

Individuals (other than trusts) are provided with an exemption from taxation on up to $10 million in capital gains realized on the sale of a business to an EOT or worker cooperative corporation, subject to certain conditions. This exemption was to expire at the end of 2026. The Economic Update will make this $10 million exemption permanent. Given that it can take many months or years for business owners to plan for a sale to an EOT, this

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