Canadian tax expert David Rotfleisch was recently featured in an article on TheLawyersDaily.ca. In this article, he explains that all gains from cryptocurrency have to be reported both in Canada and the U.S. In addition, he discussed the voluntary disclosure program of the Canada Revenue Agency, which offers relief from tax prosecution, penalty, and interest to qualifying Canadian taxpayers who are out of compliance on cryptocurrency, or other tax reporting obligations.
“The explosion in the value of cryptocurrency is very much on the radar of the tax authorities as is the knowledge that many taxpayers trading in cryptocurrency do not report their gains because of mistaken belief that they cannot be tracked. These demands to third parties, such as cryptocurrency trading platforms, are one of the typical tools used by CRA to hunt for unreported income.”
Check out the full article here.
"This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal advice nor can it or should it be relied upon. All tax situations are specific to their facts and will differ from the situations in the articles. If you have specific legal questions you should consult a lawyer."