About 10 months ago, the Canadian government announced it was raising capital gains taxes.
However the government never passed the legislation and now the government is on the brink of falling. Normally, the tax agency implements changes based on announces and assumes the legislation will come. That has had them telling people they need to pay the higher tax rate.
That’s led to some blowback and confusion. Now the government has released a statement saying the capital gains hike is dead.
The whole thing is a bit of a fiasco. I’m certainly not complaining about the outcome though and it’s something that many Canadian companies, executives and entrepreneurs have complained about.
Officially, this is just a ‘deferral’ but given the polls and the positions of Trudeau’s potential successors, it’s assuredly dead.
Separately, Canada’s carbon tax will die a similar death, no matter the results of the election.