Canada Court to Allow Challenge to CRA’s Tax Hike Practices

Aug. 13, 2025, 1:51 PM UTC

Canada’s Federal Court will allow a case to move forward challenging the Canada Revenue Agency’s practice of implementing tax changes once they’re announced, on the assumption they will eventually become law. The country’s attorney general had asked the court to dismiss the application.

  • In January, the Canadian Taxpayers Federation filed a challenge contesting the CRA’s decision to administer the capital gains tax at a higher inclusion rate — even though Justin Trudeau’s government was never able to pass legislation to implement that policy, and new Prime Minister Mark Carney ultimately scrapped it
  • The agency is equivalent to the ...

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