Saskatchewan premier, producers react to Trudeau’s resignation announcement

With Justin Trudeau’s resignation Monday, Saskatchewan producers are concerned over what will happen with the Capital Gains Tax.

While Justin Trudeau will still be the prime minister for likely a number of months while the Liberals search for a new leader, the news is having big impacts already.

With Trudeau’s resignation Monday, Saskatchewan producers are concerned over what will happen with the capital gains tax.

In September, the Liberals introduced a bill to raise the portion of capital gains that will be taxed at a higher rate. After disposing of assets  — such as stocks or investment properties — two-thirds of any amount of capital gains over $250,000 will be taxed. Under $250,000, tax applies on one-half of the gains.

Despite the current prorogation, the Canadian Revenue Agency (CRA) said they will issue taxpayer forms in accordance with the proposed capital gains rules by Jan. 31.

The finance department says the CRA will stop administering the policy if parliament resumes and the government signals it will no longer proceed with the proposed changes.

The bill has yet to pass in parliament, and with Trudeau on the way out, its future is unclear.

The CRA said parliamentary convention dictates taxation proposals are effective as soon as the government tables a notice of ways and means motion — an approach it says provides consistency and fairness.

Saskatchewan farmers feel these proposed changes to the capital gains tax are less than fair, and having the tax eventually be reduced is a good thing.