Government Opinion

Canada’s tax authority is silently watching virtual currency investors

Canada’s tax authority, Canada Revenue Agency (CRA), is reportedly watching virtual currency investors from the background.

This has been disclosed by a document sent to virtual currency investors requiring them to fill out details of their trading activities and platforms. As reported by Forbes, the document is structured in the form of a questionnaire with questions covering a wide range of crypto investors’ activities.

The Canada Revenue Authority indicated that the audit is being done “to protect the integrity” of systems used to assess risks.

According to Forbes:

Those who been targeted by the CRA have been sent a comprehensive questionnaire to fill out regarding their Bitcoin-related activity over the past year.

On January 30, Jared Adams, Director, CRA Project Oversight, was captured on Twitter indicating that Bitcoin has the potential of being used for money laundering.

The questionnaire sent to virtual currency investors is thirteen pages long with 54 questions with some questions having subsections. As part of the audit, CRA wants virtual currency investors to disclose whether they have been using services meant to hide the origin and destination of crypto transactions. The virtual currency investors are then required to disclose the service used, the reason for using it, cryptocurrency addresses, and a tracing history.

ShapeShift and Changelly also featured on the questions. Other aspects covered by the questionnaire include whether virtual currency investors have been victims of crypto thefts, have ever invested in ICOs, and if they are involved in crypto mining. The questionnaire closes off by adding that, if need be, the CRA will request for more information.

CRA noted that:

It is committed to helping taxpayers understand their tax obligations when using digital currencies, and to remind them that using digital currency does not exempt consumers from their tax obligations.

Apart from the CRA, the revenue agency in the United States, the Internal Revenue Service (IRS) has also taken a similar approach in the past.

Do you think governments all over the world are secretly watching virtual currency investors for fear of tax evasion?

Let us know your thoughts in the comments section below.

coinmag

Philip is an experienced blogger keen on staying updated with trends and news surrounding the blockchain and Bitcoin space. With several years of freelance experience in various industries, Philip brings his knowledge and experience into the crypto space.

Leave a Comment

Your e-mail address will not be published. Required fields are marked *