OTTAWA — Despite no bill ever being tabled to increase Canada’s capital gains inclusion rate, reports suggest the Canada Revenue Agency may move ahead with the proposed changes.
As reported earlier this week by Blacklock’s Reporter, the Canadian Federation of Independent Business (CFIB) quoted an official with the CRA suggesting the increase from the current 50% rate to the 66% proposed in the 2024 budget may still apply.
“If Parliament is dissolved for an election before the higher inclusion rate has become law, the Agency will continue to administer the proposed legislation,” said CRA Project Officer Nina Ioussoupova, according to the CFIB.
“This makes no sense at all,” said CFIB CEO Dan Kelly, reported Blacklock’s.
“There needs to be a time limit for a government to put legislation in place to raise taxes. How much uncertainty can the country handle? It’s time for the government to withdraw this proposal and allow each party to outline its position on capital gains taxation during the upcoming election campaign.”
CRA spokesperson Benoit Sabourin wouldn’t elaborate when contacted by Blacklock’s Reporter.
“We are looking into this,” he said. “We will keep you up to date.”
As outlined in the government’s spring budget, the new 66% capital gains inclusion rate was to take effect June 25, but no bill was ever introduced into parliament.