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ARTICLE · 10 JANUARY 2020

Recent CRA Guideline Regarding Cryptocurrency - A Toronto Tax Lawyer Analysis

Rotfleisch & Samulovitch P.C.
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The rise of cryptocurrency (e.g: Bitcoin, Ethereum, Litecoin), both as an investment vehicle as well as a medium of exchange, presents challenges for participants in the cryptocurrency market.

CanadaTax
David Rotfleisch
David Rotfleisch
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Introduction – What is Cryptocurrency in the Tax Law Context

The rise of cryptocurrency (e.g: Bitcoin, Ethereum, Litecoin), both as an investment vehicle as well as a medium of exchange, presents challenges for participants in the cryptocurrency market. While cryptocurrency can come in different types such as dApps, Privacy Coins, and Supply Chain Coins, they tend to give rise to the same kind of tax issues in the eyes of the CRA. It is important for taxpayers who hold cryptocurrency to understand how the current state of tax law would apply to cryptocurrency as well as for CRA's position on cryptocurrency. The recent CRA guideline on cryptocurrency Guide for cryptocurrency users and tax professionals provides CRA's positions on various issues surrounding cryptocurrency.

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