Canadian Chamber of Commerce Urges Government for Clear Guidance on Liberals’ Capital Gains Tax

January 10, 2025 TruthUSA

The Canadian Chamber of Commerce is calling on Ottawa to provide clarity to Canadians regarding the capital gains tax and to instruct the tax agency to hold off on implementing any changes until after an election.

The tax was included in a ways and means motion introduced by the Liberal government and passed in the House of Commons last June. Ways and means motion suggests that a specific financial measure be considered by the House.

Under the motion, Canadian companies will now be required to pay taxes on 66.7 percent of their realized capital gains, up from the previous 50 percent. Individuals must pay tax on 50 percent of the first $250,000 of capital gains earned and 66.7 percent on amounts exceeding that.

Despite Parliament being prorogued until March 24, Ottawa’s finance department has indicated that the Canada Revenue Agency (CRA) will proceed with collecting the tax.

However, Chamber senior director Jessica Brandon-Jepp is concerned about the confusion the tax is causing for businesses.

“With the recent prorogation of Parliament, the capital gains increase remains a significant concern for Canadians and businesses. They are unsure how to organize their affairs and whether this measure will be enforced in the future,” she said in a statement on Jan. 9.

Brandon-Jepp expressed that it was unusual and potentially unprecedented for the government to alter a tax based on a ways and means motion. She noted the added challenge as the Liberal government faces a possible non-confidence vote after parliament reconvenes.

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