The federal government says the Canada Revenue Agency (CRA) will continue to administer changes to the capital gains inclusion rate, even if they have not been adopted by Parliament, which is prorogued until ‘to March 24.
Posted at 11:51 a.m.
Tara Deschamps
The Canadian Press
The Finance Department says parliamentary convention is that tax proposals such as the capital gains tax measures introduced by the Liberals last year come into effect as soon as the government tables a notice of a ways and means motion.
The Liberals tabled a notice of ways and means motion in September that introduced a bill to increase the share of capital gains on which corporations pay tax from half to two-thirds. The policy would also apply to individuals with capital gains exceeding $250,000.
Despite the current extension, the Department of Finance says the CRA will issue forms to taxpayers under the proposed capital gains rules by January 31.
The ministry says the CRA will stop administering the policy if Parliament resumes and the government indicates it will no longer implement proposed changes to capital gains taxation.
The department’s update on capital gains comes a day after Prime Minister Justin Trudeau announced his resignation and the prorogation of Parliament, which removed from the House of Commons docket bills and motions that had not yet received royal assent and caused confusion around the capital gains proposal.
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