Tax Structures & Society | | 税制與社會

The Canadian Parliament was suspended (prorogued) from January 6, 2025, to March 24, 2025 , delaying all legislative processes—including the approval of the capital gains inclusion rate increase (50% → 66.67%) originally set for June 25, 2024 . Despite this, the CRA moved forward with enforcing the tax increase, creating uncertainty and triggering lawsuits from taxpayers and businesses. 🔎 Why This Matters for Taxpayers 📌 No Legislative Approval Before Prorogation The tax increase was announced in the 2024 Federal Budget, expected to take effect on June 25, 2024. Parliament was prorogued, so no bill was passed to authorize the change. Despite that, CRA began enforcing the rule—raising constitutional questions. 📌 Government Delay, Real Financial Costs Many taxpayers sold assets early to avoid the higher rate. The government later deferred the increase to January 1, 2026 —but the damage was done. This raised an uncomfortable question: should taxpayers be compen...