Capital gains tax increase in effect despite prorogation [Video]

The Canada Revenue Agency expects Canadians to adhere to a proposed capital gains tax increase – despite the fact the measure may never be passed into law.

Now that Prime Minister Justin Trudeau has announced he is stepping down and has prorogued Parliament until late March, the Liberal legislative agenda has been left to wither in the wind.

That includes the motion that would increase the amount of tax Canadians owe when they sell assets and investments.

“If you believe that these proposals are likely not going to pass, then why blindly encourage taxpayers to comply?” asked accountant Kim Moody.

According to the federal Department of Finance, it is standard practice to begin collecting new or increased taxes before they have officially been enshrined in law.

“Parliamentary convention dictates that taxation proposals are effective as soon as the government tables a Notice of Ways and Means Motion; this approach provides …