Catherine (Cathie) Brayley, Miller Thomson LLP,
Vancouver
Lesley Kim, Gowling WLG, Calgary
January 1, 2022 marks the 50th anniversary of the capital
gains tax in Canada. In this article, we outline the history of
capital gains taxation in Canada, describe some of the key features
of the current system, and comment on potential reforms.
An Overall Review of the Tax System: Capital Gains To Be
Taxed
The origin of capital gains taxation in Canada can be traced to
the Carter commission, appointed in September 1962 to
thoroughly review the Canadian tax system. Extensive debate ensued.
In 1966, the commission's report recommended, among other things,
that a tax be imposed on capital gains. The commission acknowledged
that the taxation of capital gains would be a "radical
reform" of the Canadian tax system. Its rationale was that
capital gains should be taxed in the same manner as other sources
of income, such as employment income, rent, dividends, and
interest. The
