The Canadian federal government may delay upcoming changes to the capital gains tax initially proposed in the last federal budget. A high-level source indicated that the Liberal government might instruct the Canada Revenue Agency not to collect the new taxes for the time being. This delay could result in decisions regarding the tax changes being postponed until after the next federal election, thereby potentially nullifying the proposed increase. Business groups have expressed strong opposition to these changes, especially those within the technology and medical sectors.
The federal government is likely to reverse course on changes to the capital gains tax that were announced in the last federal budget, CBC News has learned.
A key option on the table includes the government ordering the Canada Revenue Agency (CRA) to stop collecting the new taxes for now.
Delaying collection would likely push any final decision about the changes until after the next federal election, which could effectively kill the tax increase.
The CRA had been collecting the increased tax rate already, as if it had taken effect, even though the relevant legislation had not been passed.
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