The Canadian Taxpayers Federation is demanding the Canada Revenue Agency to immediately halt enforcement of the proposed capital gains tax hike which has not passed a final vote in Parliament.

“The CRA is trying to enforce a tax increase without it ever becoming law,” said Devin Drover, CTF General Counsel and Atlantic Director. “Taxation should only be based on laws duly passed by elected representatives and not assumptions by unelected, unaccountable bureaucrats.”

The controversy stems from a proposal by the Trudeau government to raise the capital gains inclusion rate for the first time in 25 years. While a ways and means motion for the hike passed last year, the necessary legislation was never introduced, debated or passed.

But now that Parliament has prorogued, the tax hike is stalled until March 24, 2025, when the House of Commons resumes. Given promises from both the Conservatives and the NDP to bring down the Liberal government, it’s unlikely the legislation will pass before the next election.

Despite this, the CRA continues to move forward with enforcing the tax hike.

“It’s a central role of Parliament to vote on tax hikes before the government takes more money from you,” Drover said. “It’s wrong for the prime minister and CRA to treat your elected representative like a rubberstamp.

“The CRA must immediately halt plans to enforce legislation that hasn’t been passed and will undemocratically cost Canadians billions.”