Prorogation of parliament as Trudeau step down will kill capital gains tax changes

Justin Trudeau’s decision to step down and prorogue parliament will keep his government from implementing its proposed changes to capital gains for now, but Canadians might not be off the hook with the country’s tax collectors just yet.

 

The proposed changes raise the portion of capital gains on which companies pay tax to two-thirds from one-half. The policy would also apply to individuals with capital gains earnings above $250,000.

 

The capital gains changes were announced as part of the budget but never got royal assent because parliament stalled last year when the Tories began filibustering over the government’s green technology fund.

Proroguing parliament clears the parliamentary order paper, meaning motions would have to be reintroduced when the House of Commons resumes activity.

 

However, Jamie Golombek says the Canada Revenue Agency previously told accountants last year that it would start applying the proposed measures on capital gains realized on or after June 25, 2024.

 

Because the CRA hasn’t offered an update since the prorogation of parliament, the managing director of tax and estate planning with CIBC Private Wealth says he’s suggesting clients prepare to pay the higher capital gains taxes, which will likely be refunded if legislation doesn’t pass.

 

 

 

 

 

This article was first reported by The Canadian Press