Liberal capital gains tax changes challenged in court [Video]

The Liberal government’s changes to the capital gains tax are now being challenged in court.

The Canadian Taxpayers Federation filed an application for a judicial review of the policy on Friday. The organization argued that the increases to the capital gains inclusion rate shouldn’t be applied because they were never officially passed into law.

“This tax grab violates the fundamental principle of no taxation without representation. That’s why we are asking the courts to put an immediate stop to this bureaucratic overreach,” Devin Drover, a lawyer for the organization, said in a statement.

April’s federal budget announced an increase to the taxable amount of capital gains — the profits that individuals or businesses make from selling an asset like a stock or a second home.

The new rules increased the inclusion rate from one-half to two-thirds of capital gains above $250,000 for individuals, and for all capital gains earned by …