Mr. Speaker, what follows is the response from the CRA as of June 17, 2025, the date of the question.
With regard to part (a), the CRA is unable to respond, as its financial system does not capture the information in the manner requested.
With regard to part (b), prior to cancellation, the CRA received 1,120 T2 returns declaring additional taxable capital gains directly related to the proposed increase in the capital gains inclusion rate. The total additional amount of taxable capital gains reported on the Schedule 1 forms was approximately $8.9 million. The CRA is not able to confirm whether incremental tax associated with capital gains reported was paid, either in full or partially, as taxpayers normally pay tax liability based on their total tax obligation.
With regard to part (c), all 1,120 returns have been adjusted to reflect the original inclusion rate.
With regard to parts (d), (e) and (f), as noted in chapter 18 of House of Commons Procedure and Practice, it is the long-standing practice of Canadian governments to put tax measures into effect as soon as the notices of the ways and means motions, or NWMMs, on which they are based are tabled in the House of Commons.
The proposed changes were tabled in a notice of ways and means motion on September 23, 2024. As such, in November 2024, the CRA indicated its intent to begin its administration of these changes on the basis of the NWMM and took steps to update its forms and systems. Generally, the CRA will not change its administration position until the government formally indicates its intention has changed.
On January 31, 2025, the government announced that it intended to defer the implementation of the change to the capital gains inclusion rate. As such, the CRA reverted to administering the currently enacted capital gains inclusion rate of one-half. On March 21, 2025, the Government of Canada subsequently announced that it does not intend to proceed with a proposed increase to the capital gains inclusion rate.