I thought this was interesting so wanted to share. I have been doing some calculations regarding the sale of a property. The inclusion rate impacts many things such as tax, RDTOH and capital dividends.
Using the example that I was working on… if the inclusion rate change does not pass, the taxpayer could end up owing money to the CRA even if they do the initial calculations based on 2/3 inclusion.
When amending to the lower inclusion rate (if not passed into law), this particular example ends up with lower tax on the gain along with lower RDTOH. The decrease in RDTOH was significantly more than the decrease in tax therefore a balance would be left owing.
I thought this was a significant issue for clients who withdraw large dividends.
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