CRA yet to offer guidance
The CRA hasn’t offered an update since the prorogation of parliament and neither it nor the finance ministry immediately responded to questions Monday from The Canadian Press about how it would treat taxes subject to the Liberal’s proposal.
“So people are now going to be in a position to file a 2024 tax return, and they don’t know what to do because we don’t have legislation that has been passed by parliament,” he said.
Golombek is suggesting clients prepare to pay the higher capital gains taxes. He reasons if the legislation doesn’t pass, anyone who pays will likely get a refund, but if it later passes and you didn’t pay, you could be hit with interest fees for being late.
“The change put forward is now dead unless it’s brought forward again by whoever does replace (Trudeau) as leader,” said Benjamin Bergen, the president of the Council of Canadian Innovators.
“We do view this as a positive step in terms of where we are at with capital gains.”
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Reaction from the business community
The industry group Bergen leads is made up of more than 150 CEOs from high-growth companies headquartered in Canada.
Though the Trudeau government maintained the changes would only impact the wealthiest 0.13% and result in $19.3 billion in revenue over the next five years, CCI’s members feared it would hinder the ability of entrepreneurs to raise capital.
“If it becomes less attractive to raise risky capital in Canada as opposed to, let’s say, south of the border, that money is going to flow elsewhere, and entrepreneurs are going to begin to flow elsewhere as well, and talent is going to flow elsewhere,” Bergen said.
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