OTTAWA, ON, Jan. 8, 2025 /CNW/ - The Canadian Medical Association (CMA) is calling on the federal government to immediately direct the Canada Revenue Agency (CRA) to stop collecting taxes on capital gains from medical corporations at a higher inclusion rate that was never approved through legislation.
While it may be standard, acceptable practice for the CRA to administer new tax proposals before they are approved by government, Parliament's prorogation and a federal election in the near future suggest it is increasingly unlikely that this legislation will ever pass.
The CMA firmly believes that the increase to the capital gains inclusion rate for medical professional corporations creates yet another barrier to retaining and recruiting physicians in a time when our health system is already under significant strain and Canadians are struggling to access care in a timely fashion.
It's important to understand why these changes are so alarming to Canada's physicians. Community-based physicians not only pay income tax but also spend as much as 40 per cent of their gross income on essential overhead costs like staff, medical supplies and office space. Physicians don't have the ability to simply increase their fees to make up for tax increases or inflation as it relates to their overhead, as other professionals may be able to do. They work for the public good with fees that are regulated by provincial agreements.
Compounding these concerns, physicians expend millions of hours annually on unpaid and unnecessary administrative tasks, contributing to burnout and reduced clinical hours. Finally, community-based physicians have to invest their own money into pension products or other forms of savings to support themselves in these areas that are now being taxed at a higher rate.
Today, 6.5 million Canadians do not have a primary care provider and emergency departments are routinely overwhelmed by people seeking care. We should be finding ways to grow the health workforce, not creating more roadblocks that may discourage the training and recruitment of new doctors, while also avoiding an exodus of health professionals. Now that this tax change is effectively cancelled, the CMA calls for a permanent reprieve of this unintentionally damaging measure.
When Parliament resumes, the CMA urges Members of Parliament to focus their efforts on legislative opportunities that will provide Canadians the stable, accessible health system they need and deserve.
Dr. Joss Reimer
President
SOURCE Canadian Medical Association
To schedule an interview or for further information, please contact: CMA Media Relations: [email protected]; Elena Gabrysz, 514-839-7296; Eric Lewis, 506-566-1671
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