Legislative Costing Note
Cost Estimate of Bill C-256, An Act to amend the Income Tax Act (donations involving private corporation shares or real estate)
Jan 25, 2021
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This private member’s bill would amend the Income Tax Act so that charitable donations of the cash proceeds of the disposition of real-estate and privately-held shares would not be subject to capital gains tax.
The table below shows the fiscal cost of the policy, the value of the increase in donations that would be due to the policy, and the total value of donations that could benefit from the policy (including the value of donations that may have been made in the absence of the policy).
| $ millions | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | Total |
|---|---|---|---|---|---|---|
| Fiscal cost | 42.1 | 170.4 | 178.3 | 187.9 | 198.8 | 777.5 |
| Additional Donations due to behavioural effects of the policy | 53.2 | 215.0 | 225.0 | 237.1 | 250.8 | 981.0 |
| Total donations that could benefit from the policy | 212.2 | 858.3 | 898.4 | 946.4 | 1,001.2 | 3,916.4 |