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ARTICLE · 14 DECEMBER 2017

Cryptocurrencies And Tax: Five Things Every Canadian Needs To Know

Wildeboer Dellelce LLP
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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?

CanadaTax
Katy Pitch
Katy Pitch

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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.

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