PMAC wrote to the Canada Revenue Agency regarding the proposed changes to the capital gains inclusion rate. In light of the prorogation of Parliament and the upcoming federal election, there is significant uncertainty regarding the likelihood that the tax bill will be introduced or passed. As a result, many taxpayers may reasonably decide to file and pay taxes under the existing capital gains legislation.
PMAC requested that CRA provide interest and penalty relief with respect to any increased tax liability that may result if the proposed changes are eventually enacted, for taxpayers that decide to file under the existing capital gains legislation. This relief could be time-limited, as appropriate. We also asked that CRA issue a public statement to this effect.
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