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CRA Pursues $54 million in Unpaid Crypto Taxes

Crypto | May 7, 2024

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CRA's Enforcement on Unpaid Crypto Taxes in Canada

The Canada Revenue Agency (CRA) has initiated about 400 audits and examinations targeting crypto asset non-compliance as it pursues approximately $54 million in unpaid taxes from cryptocurrency transactions. This reflects an increased enforcement environment as regulators catch up with technological advancements in finance.

See:  CRA Tax Implications for Individuals and Crypto Platforms

One of the issues is the lack of public awareness regarding crypto tax obligations. A recent survey commissioned by the CRA found that a third of respondents were unclear about their tax duties, with scores on regulatory knowledge averaging just over 50%.

Fintech companies must not only comply with a complex regulatory environment but they must be prepared to meet the CRA’s use of an Unnamed Persons Requirement (UPR) to collect transaction data from its customers.  In 2021, Coinsquare was required to provide information about any clients that either transacted or held at least $20,000 to the CRA and also anyone with total transactions and earnings from 2014 to 2020 of 16,500 of the most active users.  Crypto companies must maintain robust compliance programs.

Did you receive a letter?

Sahil Behal, a director general of CRA’s compliance branch explained that the letters issued to targeted taxpayers provide a 45-day window to report any undisclosed income from cryptocurrencies. If the taxpayers comply within this period, the CRA will forgive any associated penalties and interest. Failure to respond, however, could trigger a comprehensive audit by the agency.


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The Canadian government plans to introduce the Crypto-Asset Reporting Framework by 2027, which will mandate crypto exchanges and service providers to report detailed annual transaction data. This impending regulation will significantly impact how crypto businesses operate and report.

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