Changes to capital-gains tax may prompt doctors to quit, CMA warns

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Changes to capital-gains tax may prompt doctors to quit, CMA warns
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Most physicians operate their practices as small businesses through medical professional corporations, which leaves them more sensitive to changes in capital-gains rules

The entrance sign to Mount Sinai Hospital in Toronto in October, 2021. A survey of doctors conducted by the CMA in 2021 found deterioration of their mental health during the pandemic, with 47 per cent describing themselves as “flourishing” that year, down from 63 per cent in 2017.The head of the Canadian Medical Association says the federal government’s proposed increases to capital-gains taxes will pose a significant financial hit to doctors and may push some out of the profession.

“This really is one more hit to an already beleaguered and low-morale profession,” Dr. Ross said. “I am concerned that overstretched physicians are going to either leave the profession or look at working in other industries.” The excess income could remain in the corporation and be invested, Mr. Burnie said, and withdrawn later, possibly in retirement.

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