Trudeau resignation puts capital gains tax hike 'on life support', but CRA still messing up

financialpost.com:

The capital gains inclusion rate proposals first introduced in the April 16, 2024, federal budget are on life support because of the political chaos that Canada is currently experiencing.

The upcoming resignation of Prime Minister Justin Trudeau, accompanied by the prorogation of Parliament, further confirms this. All government bills and other items of business in progress effectively die on the order paper when Parliament is prorogued.

A new session of Parliament can reintroduce the bills at the stage they were at with the unanimous consent of Parliament, but the capital gains proposals never made it past the notice of ways and means motions stage, so they would have to be reintroduced in full. Given the uncertainty, it’s highly likely the capital gains proposals will never be passed.

But the Canada Revenue Agency (CRA) recently said it would continue to apply the proposed increases even if an election is called. I disagree with that decision.

Numerous other people have been commenting on this issue, including other articles, social media posts and podcasts saying that the “rule of law” is not being respected by the CRA, Prime Minister Justin Trudeau is forcing this collection of tax dollars because his government needs the money and other nonsense. This is simply wrong and the stuff of conspiracy theories.

I am no fan of this current government because of its poor tax and economic policies, but the CRA’s administrative policies on this issue have little, if anything, to do with politics.

Why? Well, it is very common in Canadian tax law for new proposals to have immediate effect upon announcement (or some future date as announced). There are very good reasons for this, such as trying to ensure the perceived “mischief”