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Majority of Canadian tech firms think capital gains policy change will hinder industry, survey suggests

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The survey adds further to the outcry that came from the highest echelons of the sector as well as the country’s startup community after the federal government presented the change in its April budget

Deputy Prime Minister and Minister of Finance Chrystia Freeland speaks about changes to the capital gains tax inclusion rate, in Ottawa, on June 10.A new survey of Canadian tech companies reveals 90 per cent of respondents think the federal government’s changes to its capital gains policy will have a negative effect on the industry.

The hike raises the portion of capital gains on which companies pay tax to two-thirds from one-half . The change took effect in June but accompanying legislation still has to be introduced and debated, steps expected to happen in the fall.Sixty per cent of the members who responded to the organization’s online survey carried out between June 18 and July 9 feel the capital gains changes will have a “very negative” impact on investment.

“That’s really just an indication that it was bad before this capital gains piece came in and now it’s only going to make it worse,” he said.

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Canadian tech firms think capital gains policy change will hinder industry: surveyA new survey of Canadian tech companies reveals 90 per cent of respondents think the federal government’s changes to its capital gains policy will have a negative effect on the industry.
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