Canadian medical organizations call on federal government to exempt physicians from increase to capital gains inclusion rate

PR Newswire
Thursday, May 30, 2024 at 9:00am UTC

Canadian medical organizations call on federal government to exempt physicians from increase to capital gains inclusion rate

Canada NewsWire

OTTAWA, ON, May 30, 2024 /CNW/ - National, provincial and territorial medical associations are calling on the federal government to exempt medical professional corporations from a planned increase to the capital gains inclusion rate.

"The proposed changes to increase the capital gains inclusion rate for corporations and individuals, specifically impacting all capital gains realized within a medical professional corporation, are alarming," reads a letter addressed to Deputy Prime Minister Chrystia Freeland and signed by the presidents of 10 medical associations from coast to coast to coast. "If implemented, these changes will undoubtedly add undue pressure and financial strain, threatening the well-being of physicians and undermining the stability of our health-care system as a whole."

Under the federal government's proposed changes, the first dollar of capital gains realized in a medical professional corporation will be subject to the higher inclusion rate of 66.67% as corporations are not eligible for the $250,000 yearly capital gains threshold afforded to individuals. In a time when Canada's health systems are under increasing strain, where patients are struggling to access timely care and health care providers are burning out from trying to hold together a crumbling work environment, governments should not be introducing new reasons for physicians to consider scaling back or leaving the medical profession altogether.

The letter to the federal government was signed by the presidents of the Canadian Medical Association, the Alberta Medical Association, Doctors of BC, Doctors Manitoba, Doctors Nova Scotia, the New Brunswick Medical Society, the Newfoundland and Labrador Medical Association, the Ontario Medical Association, the Saskatchewan Medical Association and Yukon Medical Association. To read the full letter, please click here.

About the CMA
The Canadian Medical Association leads a national movement with physicians who believe in a better future of health. Our ambition is a sustainable, accessible health system where patients are partners, a culture of medicine that elevates equity, diversity and wellbeing, and supportive communities where everyone has the chance to be healthy. We drive change through advocacy, giving and knowledge sharing – guided by values of collaboration and inclusion.

SOURCE Canadian Medical Association