C-240An Act to amend the Income Tax Act (donations involving private corporation shares or real estate)
Private member's bill, introduced in the House of Commons on February 7, 2022
- Status
- Defeated at second reading in the House of Commons
What it does
Creates a capital gains tax exemption for certain sales of private corporation shares or Canadian real estate when the proceeds are donated to a qualified donee.
What it does
- Sets taxable capital gain to zero for certain sales of private corporation shares or Canadian real estate in Canada if the seller donates money from the sale to a qualified donee within 30 days.
- Allows a deceased person’s estate to use the same exemption when the person was resident in Canada before death and the estate makes the donation within 30 days of the later sale.
- Limits the exempt gain to the part linked to the donated amount, using a formula that also accounts for any advantage received for the gift.
- Reverses the exemption if the property, or property based on it, is later acquired again within 60 months, or if a share is redeemed, acquired, or cancelled in that period.
- Updates the rules for donated flow-through shares so the new exemption is included with the existing capital gains rules.
Who it affects
- Owners of private corporation shares
- Owners of Canadian real estate
- Donors to qualified donees
- Estates
- Qualified donees
Topics
Background
It amends the Income Tax Act’s capital gains rules. The new exemption applies to certain arm’s length sales of private corporation shares or Canadian real estate.
Where it is
House of Commons
First reading
Completed.
Second reading
Defeated here. Defeated
Committee
Not reached.
Report stage
Not reached.
Third reading
Not reached.
Senate
First reading
Not reached.
Second reading
Not reached.
Committee
Not reached.
Third reading
Not reached.
Royal assent
Royal assent
Not reached.
Introduced by an MP who is not a minister. These bills compete in a lottery for debate time, and most do not become law. How a bill becomes law
How the House voted
2nd reading of Bill C-240, An Act to amend the Income Tax Act (donations involving private corporation shares or real estate)
Vote 138,
Failed
146 yeato171 nay · 12 paired
Party breakdown for vote 138 Party Position Yea Nay Did not vote Liberal Nay2 broke ranks 2 148 9 Conservative Yea 112 0 7 Bloc Yea 29 0 3 NDP Nay 0 23 2 Green Yea 2 0 0 Independent Yea 1 0 0 Total 146 171
What MPs said
Each party’s first speech on this bill in the House, from Hansard. Excerpts are the speaker’s opening sentences, unedited.
LiberalKevin Lamoureux· March 22, 2022
“In listening to what the member had to say about the legislation and with what research I was able to do on the bill, I am not convinced that this is the best way for us to compliment our charities for the fine work that they have done over the years, continue to do today and, no doubt, will do well into the future.”
Read the full speech on openparliament.caConservativeMarty Morantz· March 22, 2022
“I rise today in support of my private member's bill, Bill C-240, the supporting Canadian charities act. The pandemic has inflicted tremendous losses on charities and their ability to provide much-needed services to Canadians.”
Read the full speech on openparliament.caBlocJean-Denis Garon· March 22, 2022
“The bill seeks to achieve tax fairness in response to the following question: Why does capital in a given legal form provide a tax benefit when donated that is greater than the benefit that would be provided by the same capital, in the same amount, but in another legal form? I think that this bill is worthwhile.”
Read the full speech on openparliament.caNDPDaniel Blaikie· March 22, 2022
“I am pleased to rise to contribute some thoughts to this debate on Bill C-240. It is a bill that seeks to give the same treatment to private shares in real estate as is currently enjoyed for public shares when they are donated to a charity, and specifically to give a break on the capital gains tax for those assets when they are donated to a charity.”
Read the full speech on openparliament.ca
Read the source
LEGISinfo status: Bill defeated. Bill data from LEGISinfo, votes from openparliament.ca and the House of Commons. Last updated October 13, 2026.