Dear Clients,
There has been a lot of drama recently surrounding our Federal Government.
There was an April 2024 budget change related to capital gains rates, effective June 24, 2024, and other measures as we previously communicated. The Government did not succeed in passing this draft legislation. Parliament prorogued and the bill effectively collapsed. The Conservative party has advised that they will not implement the capital gains rate change if elected.
The previous Liberal Finance Minister who presented that budget, said she would not pursue this change! Despite this, the CRA planned to implement this draft legislation with their 2024 tax forms and expected taxpayers to then amend tax returns to recover overpaid taxes. This caused an uproar in the tax community on how we would go forward with our filings, knowing that the change would not ultimately pass in this political climate. This Government certainly wins the prize on causing mass confusion and uncertainty as we previously communicated regarding Bare Trusts and Underused Housing Tax.
On January 31, 2025 the Government has announced their intention for new draft legislation that will defer the proposed previous change to January 1, 2026. We now have some clarity for 2024 filing positions.
Click on the below link to access the News Release:
