Prime Minister Justin Trudeau’s decision to resign and prorogue Parliament has effectively nullified a series of amendments his government had proposed to capital gains taxation.
If the amendments had been implemented before the prorogation, the percentage of capital gains that would have been subject to corporate taxation would have risen from 50% to 66%.
The capital gains increase would have also applied to individuals with capital gains earnings over $250,000.
When the Liberal Party’s latest budget, presented in April, introduced the proposed changes, they were met with strong opposition from Canada’s tech and business sectors.
The president of the e-commerce giant Shopify expressed opposition to the proposed tax, saying that it would stiffle innovation and risk-taking.
Concerns were also raised that the tax could deter individuals from relocating to the country.
The proposed capital gains changes were initially introduced as a temporary measure in June of last year.
However, their implementation was deferred due to a parliamentary impasse from a disagreement over the funds for the government’s green technology fund.