Every new technology brings with it tax nightmares for tax
payers, and the inevitable disputes with the Canada Revenue Agency.
As we approach tax filing season, Canadians who have engaged in
buying or selling, or have used, cryptocurrencies must decide how
to report their transactions. Virtual currencies are on the minds
of tax collectors around the world, and the CRA is on a mission to
increase its revenue intake. As tax litigation with the CRA is slow
and arduous, taxpayers should maintain detailed evidence of their
transactions for many years.
Cryptocurrencies incorporate technology, currency, math,
economics and social dynamics. Australian entrepreneur Craig Wright
(aka Satoshi Nakamoto) is reputed to be the shadowy creator of
Bitcoin, a multi faceted, highly technical and difficult to
trace asset that may quite possibly be a pyramid scheme. The price
is highly volatile and can fluctuate up and down by several
thousand per cent. Bitcoin, for example, has hit
