On April 7, 2022, Finance Minister (and Deputy Prime Minister) Chrystia Freeland tabled the Liberal Government’s federal budget, A Plan to Grow Our Economy and Make Life More Affordable (“Budget 2022”).

Among other things, Budget 2022 proposes to:

• introduce a new special purpose trust, the “Employee Ownership Trust” under the Income Tax Act (Canada) to encourage employee ownership of businesses; and
• amend the borrowing restriction applicable to defined benefit registered pension plans.

For a discussion of these tax measures and others in Budget 2022, please see McCarthy Tétrault's Budget 2022 Commentary.