As you're aware, budget 2024 introduced an increase in the capital gains inclusion rate from one-half to two-thirds for corporations and trusts, and from one-half to two-thirds on the portion of capital gains realized in the year that exceeds $250,000 for individuals.
This policy would apply to capital gains realized on or after June 25 of this year. Based on our analysis, we estimate that these changes will increase income tax revenues by $17.4 billion over the next five years. Using a data linkage between corporate income tax returns and personal income tax returns, my office also plans to conduct additional analysis to estimate how many individuals will be affected by these changes over time, either directly or indirectly, through a corporation they own. We also plan to estimate how many unique individuals would be affected at least once over a certain number of years.
We would be pleased to respond to any questions you may have regarding our analysis or other PBO work.
Thank you.