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Capital Gains Tax Confusion: Was an Unlegislated Tax Hike Enforced? 资本利得税之谜：未立法的加税是否被强制执行？

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 compensated for losses caused by policy uncertainty?

📌 Legal Basis for the Lawsuits

  • Pelco Holdings Inc. and the Canadian Taxpayers Federation (CTF) have filed suits, arguing CRA cannot enforce a tax change without legislation.

  • Under Section 53 of the Constitution Act, 1867, only Parliament can impose taxes.

  • A ruling against the CRA could reshape how tax law is interpreted and enforced.

⚖️ What Happens Next

  • If taxpayers win, the government could face compensation claims.

  • If CRA prevails, it may set a precedent for “administrative enforcement” of unpassed laws.

📢 Either way, this case will define how tax fairness and legislative authority are balanced in Canada.

💬 What do you think?
Should taxpayers be compensated for losses caused by shifting government signals?
How can future tax law be made more predictable?

📘 中文简要说明｜Brief Summary in Chinese

2025年初，加拿大议会从 1月6日休会至3月24日（Prorogation），导致原本计划于2024年6月25日实施的 资本增值税（Capital Gains Tax）计入比例上调（50% → 66.67%） 迟迟未获得立法批准。
然而，加拿大税务局（CRA）却提前执行了这一“未立法通过”的税收变更，引发了公众质疑与诉讼。

目前，Pelco Holdings Inc. 与 加拿大纳税人联盟（CTF） 已提起法律诉讼，主张根据 《1867年宪法法案》第53条（Section 53），任何税收变更必须经议会批准。
若法院最终裁定CRA违法执行，该案件可能成为加拿大税法史上具有里程碑意义的判例。

📅 核心问题：

  • 政府是否应赔偿因政策不确定性导致损失的纳税人？

  • 税法的执行是否可以超越立法程序？

这场争议或将决定未来加拿大税制的法治边界与纳税人权利保护方向。

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