The Canadian Taxpayers Federation is filing a legal challenge today intended to stop the Canada Revenue Agency from enforcing a capital gains tax increase.

In a news release the CTF General Counsel says the government has no legal right to enforce this tax hike because it has not received legislative approval by Parliament. Devin Drover says, “This tax grab violates the fundamental principle of no taxation without representation. That’s why we are asking the courts to put an immediate stop to this bureaucratic overreach.”

The CTF is representing Debbie Vorsteveld, a resident of Mapleton, Ontario. Last year, she and her husband, Willem, sold a property that included a secondary home. They had rented the secondary home to their adult children but sold it when their kids were ready to move on. The CRA says the Vorstevelds must pay higher capital gains taxes under the proposed capital gains increase or face financial penalties.

The CTF says the federal government passed a ‘ways and means’ motion for the tax increase last year but failed to introduce, debate, pass, or proclaim the necessary legislation into law. And despite being faced with Opposition parties bringing down government in addition to parliament being progrogued….they say the CRA is still pushing ahead with enforcement of the tax as if it is already law.

In its application, the CTF argues the tax increase violates the rule of law and is unconstitutional.