Now that Parliament is prorogued, any bill that was in the process of being passed during that session officially dies. That should include the proposed changes to capital gains tax legislation. Nonetheless, I’m receiving mixed messages about that, since it’s my understanding that the Canada Revenue Agency has been acting as if the measures were already law. I’m curious as to what SDA readers been hearing from their accountants.
Prime Minister Justin Trudeau’s move to step down and prorogue parliament has killed a series of changes his government proposed to capital gains.
Yes , the accounting office I deal with has been treating the proposed increase capital gains tax as a done deal. Presumably CRA issued some sort of statement that if they didn’t , and the Bill was subsequently passed , CRA would then impose penalties for any transactions on the CRA assumption that the law would be enacted when first discussed in the House , rather than when it actually became law.
That’s what I’m hearing as well. But that was before today. I’m guessing that it’ll take months for a “clarification” from CRA and by then they’ll have collected the increased Capital Gains tax. From what I here it takes forever to get anything out of the CRA.
It’s a tax law proposed and written by Finance. I would say that Finance will insist PP get it passed into law.
My better half is a tax accountant and he has been saying in the last month that this was a misconception and likely not law but not well known in the public- they should not be able to enforce it as the bill never passed and CRA doesn’t have the legal standing to enforce. Likely wouldn’t stand up in court but time will tell
Before it gets to court, and before the next election, the Liberals and NDP will pass it.
How? We’re prorogued.
Not a tax accountant, but a retired public finance professor. But if the tax form says 2/3 of eligible capital gains, pay the tax based on that. But send them a letter, at the same time, stating what you did, stating if the legal legislation is not enacted into law, then you want the difference paid back to you.
The difference paid back along with the expect return as if it was invest in the S&P500 ETF…
Oh I suspect they will act like they have the legal authority up until the court shuts them down.
Wake up, stop the drama, the proposed Capital gains change and the entirety of the bill is now dead…period. A new government would have to table a new bill if they so choose to introduce it again. CRA can TRY… to do whatever it wants in regards to the capital gains, it will not be legal…. it is also up to you to do your own due diligence, why would you pay something that you are not legally required to do so.
I K – have you ever had to deal with CRA? When CRA issues a dictat, one ignores it at one’s peril. The capital gains change may not be law but – if CRA is acting as if it were – it’s the wise tax preparer who advises compliance. The potential consequences (penalties and interest, not to mention a lot of hassle) are rough.
That being said, we’re all awaiting the Schedule 3 to find out what CRA requires and how to calculate same.
People will just get bigger refunds. That’s it. CRA acting as it was already law was just an attempt to get the money sooner, now they’ll have to refund the money later.
https://x.com/cfib/status/1876340204090347957?s=46&t=w3LcSV7HroLipVEYnPQAmA
Limbo is always legal unless there’s a properly-posted “No Dancing” sign.
Our accountant’s opinion is that if the Capital Gains changes are Not passed by parliament then it is not in effect. We’ve talked about that issue a fair bit including what happens if parliament is porogued. In that case, the change to capital gains is not in effect.
I trust our accountant. But your millage may vary.