A British Columbia company, represented by Thorsteinssons LLP, is seeking an injunction to prevent the Canada Revenue Agency (CRA) from enforcing a proposed capital gains tax increase. The policy, outlined in the Liberal's spring budget, aims to raise the portion of capital gains subject to taxation from one-half to two-thirds for both companies and individuals with earnings above $250,000. Though the proposal hasn't passed in Parliament, the CRA has stated its intention to act as if it will take effect. The law firm argues that taxpayers should not be forced to comply with a policy that is not yet law.
Canadian Revenue Agency national headquarters in Ottawa on Friday, June 28, 2024. THE CANADIAN PRESS/Sean Kilpatrick
Thorsteinssons LLP says the challenge it filed in Federal Court last week on behalf of Pelco Holdings Inc. aims to stop the government agency from administering the change as if it is law. The rule change has yet to pass in Parliament, which is prorogued until March 24, but the CRA has said it must act as though it will take effect unless Parliament resumes and the government signals it will no longer proceed.
Capital Gains Tax CRA Injunction Parliament Lawsuit
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