To recall that the Canadian government first announced the revised capital gains inclusion rate (50% and 66.67% for gains over $250,000) on April 16, 2024, Federal Budget. Whether this would be implemented or not was in limbo—up until January 31, 2025. It is now clear that the implementation of proposed inclusion rates will be postponed to January 1, 2026 (even this is still under speculation).
The CRA only has three months to adjust systems before the general tax filing deadline, April 30, 2025. From CRA’s perspective, this deferral was last-minute and will require more time for system reversal. Hence, on March 11, the CRA urged taxpayers to hold off on filing their T1 and T3 tax returns until necessary system updates are complete.
To ease the situation for taxpayers impacted by these delays, you can expect waived late-filing penalties and interest:
- Until June 2, 2025, for individual filers (T1)
- Until May 1, 2025, for trust filers (T2)
The CRA is still working diligently to adjust its systems while urging taxpayers to wait for updates before filing. Stay posted here at Legend Fusions about when the CRA will be ready to accept tax filings. Follow our socials or reach our tax accountant today!
Jeffrey Ross
Jeffrey Ross is an experienced tax accountant focused on US-Canada cross-border taxation, with over three years in the industry, including a key role as client manager at a Canadian tax firm. He provides expertise in corporate and personal tax planning, specializing in non-resident tax, capital gains, CRA and IRS compliance, and retirement planning. Known for his personalized approach, Jeffrey is dedicated to guiding clients with clear, practical advice tailored to complex tax scenarios, aligned with the evolving tax laws.