CRA previously decided to implement unpassed tax change, but a new decision could change that
The Canadian government announced today that it will defer the implantation of its proposed capital gains inclusion rate increase to January of 2026.
The measure, which increased the capital gains inclusion rate from 50 per cent to 66 per cent for individual gains over $250,000 and for all corporate gains, had not received royal assent before Parliament was prorogued earlier this month.
Despite the business being thrown out with prorogation, the CRA had announced it would implement this tax change effective June 25, 2024.
“The deferral of the increase to the capital gains inclusion rate will provide certainty to Canadians, whether they be individuals or business owners, as we quickly approach tax season,” Finance Minister Dominic LeBlanc said in a statement. “Given the current context, our government felt that it was the responsible thing to do.”
The increase to the capital gains inclusion rate had been widely criticized by opposition parties and business leaders. Many corporations have already had to file taxes at the new inclusion rate, which could result in further complications.
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