Ottawa/CMEDIA: Even though Canada Revenue Agency reportedly hasn’t passed capital gains tax in Parliament which is prorogued until March 24, it will continue to administer it the federal government said.
Taxation proposals such as the capital gains taxation measures the Liberals introduced last year are effective as soon as the government tables a notice of ways and means motion dictated by the Parliamentary convention, the finance department says.
A notice of a ways and means motion tabled by the Liberals in Sept which introduced a bill meant to raise the portion of capital gains on which companies pay tax to two-thirds from one-half.
The policy is equally applicable to individuals with capital gains earnings above $250,000.
Despite the current prorogation, the CRA will issue taxpayer forms, the finance department says in accordance with the proposed capital gains rules by Jan. 31.
In the event of resumption of the Parliament and the government signals not to proceed with the proposed changes to capital gains taxation, the CRA will stop administering the policy, says the department.
Confusion around the capital gains proposal was caused by the department’s capital gains update coming a day after Canada Prime Minister Justin Trudeau announced his resignation and the proroguing of Parliament, which wiped the House of Commons docket of bills and motions that had yet to receive royal assent.
Facing rising dissent against him, Justin Trudeau Monday resigned as the leader of his Liberal Party of Canada which will effectively end his nine-year-long tenure as the country’s Prime Minister.
He will continue as Canada’s Prime Minister until the party picks his successor.
“I have informed my party and the Governor that I intend to resign as leader of the party as well as prime minister of Canada, and will do so as soon as my successor is appointed,” Trudeau made the announcement during a press conference at his Rideau Cottage residence.
“I hereby prorogue the Parliament until March 24 in order to initiate the process of finding a new leader to lead the party and Canada until elections scheduled for later this year,” he said.
“A new prime minister and leader of the party will carry its values and ideals into the next election, and I am excited to see that process unfold,” he stated.
