Confiscation Tax (66.67% inclusion of capital gains)
With Trudeau’s resignation, the Confiscation Tax may be gone.
There were amendments to the capital gains taxes to be implemented effective 24 June 2024. These changes were introduced in the April budget.
After the first $250,000 for individuals, and from the outset for corporations the inclusion rate was moved from 50% to 66.67%.
For many reasons, the passage of the underlying Bill was simply delayed. Now, Parliament has been prorogued, so it’s too late now. This highly unpopular Bill would have to be re-introduced and passed in order to become law.
Why it was ever changed, who knows!
But, going forward it’s quite unlikely. In fact we will have the same tax system that was introduced originally by Pierre Trudeau in 1972.
Brian Madigan, LL.B., Broker