Canada to Apply Capital Gains Change Despite Government Halt (1)

Canada’s tax authority will continue applying the higher capital gains inclusion rate despite Prime Minister Justin Trudeau’s suspension of Parliament.

Trudeau’s government introduced the change in the 2024 federal budget, increasing the inclusion rate as of June 25 from 50% to two-thirds for all corporations and trusts, and for individuals earning gains above C$250,000 ($175,000), with some exceptions.

The measure, which drew condemnation from business groups, didn’t make it into legislation before Trudeau announced his resignation on Monday and suspended Parliament until March 24. As a result, the increased rate can only become law if a new government reintroduces ...