With the recent prorogation of Parliament, the capital gains increase remains an acute concern to Canadians and businesses, who remain unsure how to structure their affairs and whether this measure will be enforced in the future. It is inappropriate—and, by our analysis, unprecedented—for a government to continue to implement a tax change solely based on a Ways and Means motion, with the clear threat of a non-confidence motion and no clear timeline to table legislation. This increased uncertainty compounds the impact of this tax increase in driving away new investment and entrepreneurship from our country at the exact moment we need it most.

Given the likely possibility that this tax increase may no longer be enacted in 2025, it is imperative that the government provide certainty to Canadians and direct the CRA not to enforce this measure until after an election, if at all.  

• Jessica Brandon-Jepp, Senior Director, Fiscal and Financial Services Policy

e.