The CRA is yet to provide guidance
The CRA has not provided an update since Parliament was adjourned and neither the Treasury Department immediately responded to questions Monday from The Canadian Press about how it would handle the tax in line with the Liberal proposal.
“Therefore, people will have the opportunity to submit tax papers for 2024, they do not know what to do because we do not have a law passed by parliament,” he said.
Golombek suggests that clients prepare to pay capital gains tax. He reasons that if the law doesn’t pass, anyone who pays will likely get a refund, but if it later passes and you don’t pay, you could be hit with late interest fees.
“The change that has been put in place is now dead unless it is reintroduced by whoever succeeds (Trudeau) as leader,” said Benjamin Bergen, president of the Founders Council of Canada.
“We see this as a positive step in terms of where we are with significant benefits.”
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Reaction from the business community
Bergen’s industry-leading group is comprised of over 150 CEOs from high-growth companies headquartered in Canada.
Although the Trudeau government has maintained the changes will impact the wealthiest by 0.13% and result in $19.3 billion in income over the next five years, CCI members fear it will hamper businesses’ ability to raise capital.
“If it becomes difficult to raise venture capital in Canada unlike, let’s say, south of the border, that capital will flow elsewhere, and entrepreneurs will begin to flow elsewhere, and talent will flow elsewhere,” Bergen said.
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