CRA to move forward with capital tax changes amid parliamentary pause
Posted January 7, 2025 6:47 pm.
Despite Parliament’s prorogation, the Canada Revenue Agency (CRA) will continue to implement the proposed changes to the capital gains tax.
The amendments, still awaiting Parliament’s approval, would increase the portion of capital gains that businesses and individuals earning over $250,000 pay on every dollar above that amount — from half to two-thirds.
The Department of Finance confirmed to 1130 NewsRadio on Tuesday that “CRA will issue the forms to allow taxpayers to file in accordance with the new capital gains rules by January 31, 2025.”
“Although these proposed changes are subject to parliamentary approval, consistent with standard practice, the Canada Revenue Agency (CRA) is administering the changes to the capital gains inclusion rate effective June 25, 2024, based on the proposals included in the Notice of Ways and Means Motion tabled September 23, 2024,” said a Department of Finance official in a statement.
For details on the proposed changes, you can visit the Notice of Ways and Means Motion.
“Upon resumption of Parliament, if no bill is passed in the House of Commons, and the government signals its intent to not proceed with the proposed measures, the CRA would cease to administer them,” the statement noted.
Additionally, CRA says it will provide interest and penalty relief for corporations and trusts impacted by the changes, with filing deadlines on or before March 3, 2025.
