OFA wrote to the Honourable Chrystia Freeland (Deputy Prime Minister and Minister of Finance) regarding the proposed changes to the capital gains taxation.
The changes proposed in the Federal Budget 2024 to increase the capital gains inclusion rate to 67% for individuals with capital gains over $250,000 and the first dollar of capital gains on incorporated businesses would add a significant tax burden at a time when farmers can least afford it. Additionally, the proposed increase in capital gains inclusion rates poses a significant threat to the viability of farm succession plans.
OFA requested that the government pause the implementation of the higher capital gains inclusion rate, scheduled to take effect on June 25th, and instead initiate an extensive consultation period that runs until January 1st, 2025.
The consultation process will allow for the necessary dialogue and adjustments to be made, to ensure that the final policy is equitable and supportive of Canadian farmers.