CRA can enforce tax changes before Parliament passes them. Here’s how
The ruling stems from Ottawa’s failed 2024 capital gains tax hike. Though Parliament never passed the legislation, the CRA said it would enforce the higher rate pending approval.
A federal judge has upheld the Canada Revenue Agency’s controversial practice of enforcing proposed tax changes before Parliament passes them, leaving taxpayers caught in the 2025 capital gains tax confusion without relief.
“Taxpayers in January 2025 were undoubtedly left in a difficult position,” Federal Court Justice Glennys McVeigh wrote in a decision released Wednesday.
“It is not this Court’s role to determine how the Revenue Agency should prepare to administer tax proposals prior to their enactment.”
The ruling stems from Ottawa’s failed 2024 capital gains tax hike. Though Parliament never passed the legislation, the CRA said it would enforce the higher rate pending approval, according to Blacklock’s Reporter.
That never happened.
