Some fear upcoming federal tax changes on rich could result in donation nosedive; others say concern unwarranted

More than 900 people have signed a petition urging the government not to “weaken giving incentives”

Why It Matters

Wealthy Canadians’ donations form a growing share of the total charitable giving pie. Some charity advocates worry a proposed tax policy change, aiming at forcing high-income Canadians to pay more in taxes, will harm charitable giving.

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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