Introduction As digital currencies, such as Bitcoin and Ethereum, become increasingly mainstream, Canadian taxpayers and businesses need to understand the tax implications associated with using, trading, or earning virtual currencies. Virtual currencies are blockchain-based digital assets that can be used to buy or sell goods, services, or even transferred between users without the need for […]

Introduction Yield farming, a popular strategy in decentralized finance (DeFi), involves lending or staking cryptocurrency to earn rewards in the form of interest or additional tokens. As this activity grows in popularity among Canadian investors, proper accounting practices and tax compliance have become essential. The Canada Revenue Agency (CRA) treats yield farming as a taxable […]

Introduction Cryptocurrency mining is a popular way to earn digital assets such as Bitcoin, Ethereum, and others, but with the income earned through mining comes significant tax obligations. In Canada, the Canada Revenue Agency (CRA) requires cryptocurrency miners to maintain accurate records of all transactions, income, and expenses related to mining activities. Proper record-keeping not […]

Introduction The cryptocurrency market has grown exponentially, providing opportunities for traders and businesses to leverage blockchain technologies, smart contracts, and non-fungible tokens (NFTs). For Canadian-controlled private corporations (CCPCs), there are substantial tax benefits associated with structuring a cryptocurrency trading business. This article delves into these benefits, focusing on how CCPCs can leverage the Small Business […]

Introduction With the increasing popularity of cryptocurrency investments and activities such as staking and yield farming, the Canada Revenue Agency (CRA) has intensified its focus on auditing cryptocurrency rewards. For Canadians earning income from staking, mining, or other crypto-based activities, navigating a CRA audit can be challenging. This article explores the key areas that CRA […]

Introduction As cryptocurrency staking continues to gain popularity, businesses in Canada that participate in staking activities must be aware of the accounting and tax implications. The Canada Revenue Agency (CRA) requires businesses to report staking income accurately, and auditors will scrutinize the financial records related to these activities. This article explains the auditing considerations for […]

Introduction As Bitcoin becomes an increasingly popular investment in Canada, it’s essential for investors to understand how capital gains tax applies to Bitcoin sales and trades. In Canada, the Canada Revenue Agency (CRA) treats Bitcoin and other cryptocurrencies as a form of commodity, meaning that any profits realized from the sale or trade of Bitcoin […]

Introduction As the Canadian Revenue Agency (CRA) tightens regulations on cryptocurrency activities, Initial DEX Offerings (IDOs) have emerged as a significant point of interest for both investors and tax authorities. Participating in IDOs, which are decentralized token sales, involves the acquisition and trading of digital assets, making it crucial for Canadian participants to understand the […]

Introduction As the adoption of crypto-assets continues to grow, particularly cryptocurrencies like Bitcoin, Ethereum, and Tether, Canadians engaging in crypto-asset activities must be aware of their legal obligations. The Canada Revenue Agency (CRA) has outlined specific requirements for reporting income and capital gains from crypto-asset transactions. This article explores the critical obligations, responsibilities, and best […]

Introduction As the cryptocurrency market continues to expand, the role of auditors in cryptocurrency accounting has become increasingly critical. Auditors ensure the accuracy, completeness, and fairness of financial statements that include cryptocurrency transactions and holdings, complying with Canadian accounting standards such as IFRS or ASPE. Given the recent developments in regulations by the Canadian Securities […]