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ARTICLE · 28 MAY 2024

Even The Dead Wouldn't Be Spared From Canada's Capital Gains Hike

Osler, Hoskin & Harcourt LLP
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Canada's proposed increase to its capital gain inclusion rate is likely to impact a wide cross-section of taxpayers, not just the "wealthiest" individuals and "a small minority" of Canadian businesses...

CanadaTax
Osler, Hoskin & Harcourt LLP
Osler, Hoskin & Harcourt LLP
Leandra Gupta
Leandra Gupta
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Canada's proposed increase to its capital gain inclusion rate is likely to impact a wide cross-section of taxpayers, not just the "wealthiest" individuals and "a small minority" of Canadian businesses, as the government has asserted.

In its latest budget [PDF], Canada has proposed to raise the capital gain inclusion rate from one-half to two-thirds for dispositions on or after June 25. The higher rate would apply to all dispositions by corporations and trusts. Individuals would also be subject to the higher rate on realized gains that exceed CA$250,000 (about $182,000) in a year.

The budget bill that was tabled on April 30 didn't include the proposal. Rather, the government stated it intends to introduce the increase in a standalone bill.

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