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ARTICLE · 06 APRIL 2022

Miners Be Aware: New GST/HST Measures Announced For Cryptoasset Mining

McCarthy Tétrault
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The Department of Finance ("Finance") announced draft legislation on February 4, 2022 that would remove most cryptoasset mining activities from the general goods and services tax / harmonized sales tax ("GST/HST") regime.

CanadaTax
Tax Perspectives
Tax Perspectives
Randy Schwartz
Randy Schwartz
Jesse Waslowski
Jesse Waslowski
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The Department of Finance ("Finance") announced draft legislation on February 4, 2022 that would remove most cryptoasset mining activities from the general goods and services tax / harmonized sales tax ("GST/HST") regime. The draft legislation introduces the new defined terms "cryptoasset", "mining activity", and "mining group operator". The proposed amendments will substantially restrict the availability of input tax credits ("ITCs") for cryptoasset mining activities and generally remove the application of GST/HST from the provision of mining activities and "barter" payments made in exchange for the performance of mining activities. These new rules will not apply to the extent that the mining activities are performed for a person whose identity is known, provided that person is someone other than the mining group operator.

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