The Canadian government has announced that the Canada Revenue Agency (CRA) will continue to implement the proposed capital gains tax changes from last year's budget, despite the fact that these changes have not yet been passed in Parliament, which is prorogued until March 24. The Finance Department states that taxation proposals become effective once the government tables a notice of ways and means motion. The proposed changes would increase the taxable portion of capital gains for companies to two-thirds from one-half and apply to individuals with capital gains earnings above $250,000. The CRA will issue taxpayer forms in line with these proposed rules by January 31, but will halt the policy if Parliament resumes and the government decides not to proceed with the changes. This update follows Prime Minister Justin Trudeau's resignation and the proroguing of Parliament, which has caused confusion regarding the capital gains proposal.
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