Thank you for the question.
This relates to the entrepreneur who is here, Mr. Stefanec. When he goes to sell his business, $1.25 million will already be tax exempt when he sells his shares. If he owns the business jointly with his spouse, $2.5 million would be tax exempt. Tax specialists often multiply the $1.25 million exemption by adding children to the business structure. The amount of that exemption has also just been increased with the announced change to the capital gains exemption rate. It was supposed to be $1 million this year, in 2024, but it will increase to $1.25 million on June 25, as you indicated.
The other incentive measure in Canada is in fact more restrictive because it will apply to business founders only. If people join the company later on, they will not qualify. According to the original wording—I don't know what the final wording of the bill will be—this also prevents adding people who are not really involved in the business, such as children. The rate offered will be half of the capital gains inclusion rate. So if the inclusion rate is 67%, the tax rate will be 33%. So that will be more advantageous than at present.