Canadian charities say the federal government must amend new tax legislation targeting the country’s wealthiest – or risk a drop in donations.
In spring’s federal budget, the Canadian government proposed several changes to the Alternative Minimum Tax (AMT) calculation — a second way of determining taxes owed, designed to ensure that all Canadians are paying their fair share after credits and benefits are tallied up.
Beginning in 2024, Canadians earning more than $173,000 will be required to calculate their taxes using the standard and AMT methods, paying whichever is higher.
When the AMT method is applied, the federal changes will require Canadians to pay 30 per cent of the capital gain on some types of donations, such as gifts of stock or donations of ecologically sensitive land — a change from the current total exemption of capital gains.
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