Prime Minister Justin Trudeau's government will continue to collect a modified capital gains tax, the finance ministry said on Tuesday, after the proposed measure was thrown into limbo when Trudeau suspended parliament.

When Parliament was prorogued, all bills and motions that had not yet received royal assent were essentially killed. So why is the Canada Revenue Agency charging higher capital gains taxes that were never formally adopted by Parliament?

The Canada Revenue Agency expects Canadians to adhere to a proposed capital gains tax increase – despite the fact the measure may never be passed into law.

The federal government says the Canada Revenue Agency will continue to administer the capital gains tax changes proposed in the budget last year, even though they haven’t passed in Parliament, which is prorogued until March 24.

The Canada Revenue Agency has yet to offer guidance on how the Liberals’ capital gains tax proposal will be handled.

Whether Parliament is prorogued or dissolved, the agency generally continues to administer proposed legislation

Canada’s tax authority will continue applying the higher capital gains inclusion rate despite Prime Minister Justin Trudeau’s suspension of Parliament.