CRA doesn’t yet offer guidance
The CRA has not provided an update because it was passed by Parliament and neither it nor the Treasury Department immediately responded to questions from The Canadian Press on Monday about how they’d handle taxes subject to the Liberal proposal.
“People will now be able to file a 2024 tax return and they won’t know what to do because we don’t have any laws passed by Parliament,” he said.
Golombek suggests his clients prepare to pay higher capital gains taxes. He argues that if the law doesn’t pass, anyone who pays will likely get a refund, but when it passes later and you do not pay, you possibly can face interest charges for the late payment.
“The proposed change is now dead unless it is pushed again by whoever replaces (Trudeau) as leader,” said Benjamin Bergen, the president of the Council of Canadian Innovators.
“We view this as a positive step in terms of our current capital gains status.”
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Reaction from the business world
The industry group led by Bergen consists of greater than 150 CEOs of high-growth firms headquartered in Canada.
Although the Trudeau government claimed the changes would only impact the richest 0.13% and lead to $19.3 billion in revenue over the subsequent five years, CCI members feared that this may be the power of entrepreneurs to lift capital.
“If it becomes less attractive to raise risky capital in Canada rather than, say, south of the border, money will flow elsewhere, and entrepreneurs will start flowing elsewhere too, and talent will flow somewhere else,” Bergen said.
