Parliamentary convention dictates tax proposals are effective as soon as the government introduces them in the house
The Canada Revenue Agency will continue to administer the capital gains tax proposals, even though they haven’t passed in parliament, which has been prorogued until March 24.
Recommended Videos
The finance department says parliamentary convention dictates that taxation proposals such as the capital gains taxation measures that the Liberals introduced last year are effective as soon as the government introduces them in the house.
In September, the Liberals introduced a bill to raise the portion of capital gains that will be taxed at a higher rate. After disposing of assets (such as stocks or investment properties) two-thirds of any amount of capital gains over $250K will be taxed. Under $250K tax applies on one-half of the gains.
Despite the current prorogation, the finance department says the CRA will issue taxpayer forms in accordance with the proposed capital gains rules by January 31.
The department says the CRA will stop administering the policy if Parliament resumes and the government signals it will no longer proceed with the proposed changes.
The department’s update comes a day after Prime Minister Justin Trudeau announced his resignation and the proroguing of parliament, which parked the House of Commons docket of bills and motions that had yet to receive royal assent and caused confusion around the capital gains proposal.
Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here.