Tag Archives: CRYPTO ACCOUNTING & TAX BLOGS

Introduction – International Tax Coalition Targeting Cryptocurrency In the summer of 2018, an international coalition of tax administrators—including the Canada Revenue Agency (CRA) and the United States Internal Revenue Service (IRS)—joined forces to address tax compliance in the cryptocurrency space. This initiative, aimed at exposing cryptocurrency users evading tax obligations, continues to expand. Since then, […]

Introduction: Taxation and the Evolving World of Cryptocurrency Trading Cryptocurrency trading has introduced innovative financial mechanisms, such as flash loans, that present unique challenges for tax compliance. The Canada Revenue Agency (CRA) continues to adapt its approach to the rapidly evolving cryptocurrency space. Flash loans, a relatively new financial tool, highlight the complexities of regulating […]

Introduction: Stablecoins and Their Growing Role in Cryptocurrency Stablecoins have emerged as a solution to the volatility commonly associated with cryptocurrencies like Bitcoin and Ethereum. These digital currencies are “pegged” to more stable assets, such as fiat currencies or precious metals, offering a predictable value that has made them essential to global crypto markets. Stablecoins […]

Introduction: Understanding Bitcoin and Bitcoin Mining Bitcoin operates as a decentralized cryptocurrency within a distributed ledger system known as a blockchain. This system records all Bitcoin transactions, creating a transparent, public ledger. Transactions are validated by network participants—nodes or peers—ensuring security and authenticity. Bitcoin mining is the process of verifying these transactions through computational work, […]

Introduction: Voluntary Disclosure Program Overview The Canada Revenue Agency’s (CRA) Voluntary Disclosure Program (VDP) allows taxpayers to proactively correct previous errors or omissions in their tax filings. This program is beneficial for individuals and businesses seeking to resolve unreported income, incorrect filings, or other discrepancies while avoiding severe penalties and potential criminal prosecution. By participating […]

Introduction: Understanding Bare Trusts in Cryptocurrency Investments The rapid development of blockchain technology has introduced innovative arrangements and opportunities, such as cryptocurrency investments, NFTs, and decentralized finance activities like yield farming. One lesser-known yet impactful tool for Canadian cryptocurrency investors is the bare trust. This article provides an overview of the concept of bare trusts, […]

Introduction – Departure Tax for Canadian Residents Moving Abroad Departure tax is a critical consideration for Canadian residents transitioning to non-resident status. Canadian residents are subject to tax on their worldwide income, while non-residents are only taxed on Canadian-sourced income. The determination of tax residency hinges on various factors and may differ from immigration status. […]

Introduction – Cryptocurrency and NFTs as Matrimonial Property Divorces often result in significant financial changes, with the division of matrimonial property being a central concern. As investments in cryptocurrency and non-fungible tokens (NFTs) continue to grow, these digital assets have increasingly become part of the property division process. This article explores how cryptocurrency and NFTs […]

Introduction – Digital Payment Services and Financial Reporting Obligations Digital payment platforms like PayPal, widely used for personal and professional transactions, have brought convenience to cross-border financial activities. However, they may also bring reporting obligations for Canadian taxpayers. Whether your PayPal account is used for personal or business purposes could affect your obligations to file […]

Introduction – What Exactly is a “DAO”? A Decentralized Autonomous Organization (DAO) is a new-age governance model that leverages blockchain technology and smart contracts to make decisions without centralized leadership. Unlike traditional organizations led by boards or executives, DAOs operate through the collective decision-making of token holders. The voting power of each participant often correlates […]