December 12, 2017
Read online or download the full update here.
It seems like all anyone can talk about these days is the value of Bitcoin and other cryptocurrencies. But what does this mean for Canadians and the Canadian tax authorities? Below are the answers to five important questions for Canadian taxpayers who interact with cryptocurrencies:
1. What is it?
The Canada Revenue Agency (the "CRA") has said that cryptocurrencies are not "money" or a "currency" for Canadian tax purposes, but rather should be treated as a commodity. Some consequences include that: (i) a cryptocurrency is not eligible for investment in a registered plan, and (ii) transactions dealing in cryptocurrencies fall under the CRA policy for barter transactions.
The easiest way (in the author’s admittedly non-technological opinion) to think about a cryptocurrency is to equate it with gold. One can pay in cryptocurrencies,...
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