Canada Revenue Agency (CRA) is conducting a large-scale audit, targeting crypto traders, who have failed to reports profits made from transactions.
Norman MacDonald, the head of tax litigation at Rogerson Law Group in Toronto signaled that a crackdown would commence identifying potential violators of the country’s tax law.
Recently, CRA secured a court order against Coinsquare, a crypto exchange platform. Coinsquare has been ordered to provide names and details of customers’ active and inactive accounts to CRA.
The audit will cover a period from 1st January 2013 to 19th March 2021. MacDonald added that Coinsquare isn’t required to turn over the information before 1st January 2013, but clients should do so.
CRA will use Coinsquare customers’ information to determine whether they filed the required tax returns. Several years ago, CRA carried out a similar audit against online retail giant eBay.
The agency secured a federal court order that obliged eBay to release its clients’ information to CRA. Since then, CRA has had a similar ongoing project, this time targeting crypto platforms. MacDonald hopes that CRA will secure similar orders against other crypto exchange platforms in the future.