The Liberal government announced its intention in Budget 2016 not to proceed with a measure announced by the previous Conservative government in last year’s budget that would have allowed investors to donate the cash proceeds of the sale of private corporation shares or real estate without triggering capital gains tax, as long as the donation was made within 30 days of the disposition. The measure was to have started in 2017.
The decision will be not be welcomed by the charitable sector, says Jamie Golombek, managing director of tax and estate planning with Toronto-based Canadian Imperial Bank of Commerce’s wealth strategies division.
“It’s unfortunate that the government chose to cancel the proposed change as it may substantially reduce the number of significant gifts made by wealthy individuals starting next year,” he said.
The decision to reverse the measure will save the government $80 million over the next two fiscal years.