OTTAWA — The federal government says it is deferring the implementation of a hike to the capital gains inclusion rate to next year.
The deferral moves back the implementation of the change from June 25, 2024 to January 1, 2026.
The deferral offers a reprieve for Canadians and businesses who were seeking clarity as the tax deadline nears.
The hike is meant to raise the portion of capital gains on which companies pay tax to two-thirds from one-half. The policy would also apply to individuals with capital gains earnings above $250,000.
While the hike was proposed in the Liberals' latest federal budget and introduced later as a ways and means motion, it hasn't passed in Parliament, which is prorogued until March 24.
However, the Canada Revenue Agency had already started to administer the changes because parliamentary convention dictates that taxation proposals are effective as soon as the government tables a notice of ways and means motion.
Tara Deschamps, The Canadian Press
