Canada Revenue Agency updated taxpayers and filers on information returns affected by the proposed capital-gains inclusion-rate change.
CRA said it was reverting to the currently enacted one-half capital gains inclusion rate.
The agency also said certain tax-slip information, mainly T3, T4PS, and T5008 book-value information, needed recalculation so taxpayers would receive accurate information.
CRA did not revise the tax slips and XML specifications that had been published in fall 2024. Instead, it maintained Period 1 and Period 2 reporting on T1 and T3 schedules.
Period 1 covers dispositions before June 25, 2024. Period 2 covers dispositions on or after June 25, 2024.
The update also explained late-filing relief for information returns affected by the recalculation work. For example, if a relief period ended on March 7, 2025 for a return due February 28, 2025, a return filed March 8 would be treated as eight days late.
The practical importance is accuracy. Slip issuers, trusts, partnerships, and taxpayers needed to reconcile capital-gains reporting while CRA administered the enacted one-half inclusion rate and preserved schedule detail around the proposed change date.