CRA Collects $54 Million in Undeclared Crypto Transactions

by

As a crypto investor with several years of experience under my belt, I’m not surprised by the CRA’s increased scrutiny on cryptocurrency transactions. I’ve seen the market grow exponentially over the past few years, and with that growth comes an increase in tax evasion attempts. However, I believe the CRA’s efforts are just the tip of the iceberg when it comes to addressing this issue.

The Canadian Revenue Agency (CRA) has intensified its scrutiny on tax evasion involving cryptocurrencies. Between the fiscal years 2023-2024, the CRA has identified and collected over $54 million in undeclared cryptocurrency transactions. Approximately 400 audits related to cryptocurrency are currently underway, as confirmed by the director general of the Compliance Branch, Sahil Behal.

David Rotfleisch, an experienced tax attorney, views the Canada Revenue Agency’s (CRA) actions as a modest response to the significant issue of cryptocurrency taxation. He argues that the amount of reassessed taxes is relatively insignificant compared to the total value of transactions involving digital currencies such as Bitcoin and Ethereum. In response, the CRA has implemented new initiatives to inform taxpayers about their obligations regarding these popular cryptocurrencies.

Following a recent survey revealing that several Canadians lacked knowledge about crypto taxation rules, the Canada Revenue Agency (CRA) has started sending out letters of intent to audit. The primary target of this initiative are individuals suspected of earning unreported income from trades on the Coinsquare exchange. Those identified have 45 days to come forward and report any undeclared income to prevent penalties and additional interest costs.

Read More

2024-05-07 01:40