Ottawa must axe capital gains changes amid uncertainty: Canadian chamber
The Canadian Chamber of Commerce is calling on the federal government to restore clarity to the upcoming tax filing season by pre-emptively nixing its proposed changes to capital gains taxes.
Those measures, which would see the taxable portion of capital gains rise to two-thirds from half in some circumstances, are currently in limbo and at risk of not being made law.
The Canada Revenue Agency nonetheless intends to administer the changes outlined in the Liberal government’s proposal. A Department of Finance official confirmed as much in a statement to Global News this week, citing “Parliamentary convention” and a need for “consistency and fairness” for taxpayers.
But the Canadian Chamber of Commerce said in a statement Thursday that going ahead with the controversial changes in a period of significant political uncertainty would only sow confusion.
“Given the likely possibility that this tax increase may no longer be enacted in 2025, it is imperative that the government provide certainty to Canadians and direct the CRA not to enforce this measure until after an election, if at all,” Jessica Brandon-Jepp, the chamber’s senior director of fiscal and financial services policy, said in a statement.
The House of Commons’ work was stymied for months amid a Conservative filibuster in the fall, capped off by outgoing Prime Minister Justin Trudeau’s move this week to prorogue Parliament until March 24 while a Liberal leadership race to replace him is held.
The capital gains changes were proposed in the 2024 budget and set to take effect for all gains realized after June 25, 2024, but the Liberals have yet to pass legislation making the proposed measures law.
The House of Commons voted to pass a ways and means motion in June 2024
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