How the extension will affect capital gains tax changes in Canada
CRA has not yet provided guidance
The CRA has yet to provide an update since Parliament adjourned, and neither the CRA nor the Treasury Department immediately responded to questions from The Canadian Press on Monday about how taxes subject to the Liberal proposals would be handled.
“So people will now be able to file their 2024 tax returns, but they don’t know how to do that because we don’t have the legislation passed by Parliament,” he said.
Golombek advises clients to prepare for higher capital gains taxes. His reasoning is that if the legislation doesn’t pass, anyone who pays may get a refund, but if it later passes and you don’t pay, you could be charged interest for being late.
“Unless someone replaces (Trudeau) as leader, the changes proposed are now dead,” said Benjamin Bergen, president of the Canadian Council of Innovators.
“We do think this is a positive step in terms of our capital gains.”
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Business community reaction
Bergen leads the industry group, which consists of more than 150 CEOs from high-growth companies headquartered in Canada.
While the Trudeau government insists the changes will only affect the top 0.13 per cent and will bring in $19.3 billion over the next five years, CCI members worry it will hamper entrepreneurs’ ability to raise capital.
“If it becomes less attractive to raise venture capital in Canada rather than south of the border, then money will start to flow elsewhere, entrepreneurs will start to flow elsewhere, and talent will start to flow elsewhere,” Bergen said. explain.
