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Canada Revenue Agency Starts Auditing Crypto Investors

08 Mar 2019

As per recent news reports, the tax collection service of Canada, the Canada Revenue Agency (CRA), has started auditing cryptocurrency investors, according to news portal Coinnounce.The report stated that the tax collection agency sent out exhaustive questionnaires to cryptocurrency investors in Canada asking them about their activities pertaining to cryptocurrency trading. The questionnaire had about 54 questions as well as sub-questions and runs on for 14 pages.While the agency refused to answer questions about the questionnaire citing ‘violation of the integrity’ to their ‘risk assessment systems’, the questionnaire does aim to clarify many important facts about the crypto investments of crypto investors. It has several questions like how they bought the digital assets, what was the medium of this purchase, do they use services/tumbers like mixing of the digital coins etc. It also includes queries like have they purchased/sold the cryptocurrencies on the exchanges like ShapeShift or Changelly. It must be noted that the two mentioned crypto exchanges allow the investors to buy/sell the cryptocurrencies with no disclosure of the identity of the customer.So far, Canada has had a laissez faire attitude towards cryptocurrencies. Earlier this year, Canadian Electoral Body, Elections Canada announced that it was all set to accept donations in cryptocurrency, in the upcoming elections, as reported by Crypto-News India.The body has formulated a draft guideline that attempts to solve the all-important questions: are cryptocurrencies to be counted under monetary or non-monetary contributions. It went live on the website in December last year.Pertaining to this, the message on the website had said, “With interest in cryptocurrencies on the rise, political entities have requested guidance on accepting contributions and conducting other transactions in bitcoin or altcoins. This interpretation note seeks to answer the following questions: Are cryptocurrencies monetary or non-monetary for the purpose of the Canada Elections Act (“CEA”)? How do the contribution rules apply? Can political entities buy property or services directly with cryptocurrencies? The note also clarifies reporting requirements for buying, selling, transferring and holding cryptocurrencies.”Liked what you read? Join us on Telegram

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