Marina Lyubimova
⬤ Canada's tax watchdog warns that many people who use cryptocurrency do not pay the tax they owe. The Canada Revenue Agency discovered that close to four out of ten persons who deal with crypto either evade tax entirely or raise clear warning signs that demand a closer look. The finding shows that tax reporting for digital currency has turned into a tangled affair.
⬤ The figures are blunt - roughly fifteen of every hundred crypto users in Canada have never filed a return. Among those who did file, about thirty of every hundred fall in the high risk group because their declarations look doubtful or lack required details. Plenty of traders do not grasp that a simple coin-for-coin swap or a mere transfer of assets, can create a capital gain tax charge.
⬤ The agency is not standing still - it has expanded its crypto enforcement unit to thirty five auditors who now sift through more than two hundred and thirty open files. During the past three years it has recovered about one hundred million dollars in overdue tax, evidence that firmer enforcement produces results. Tax bodies in other countries apply the same method - they pull data from blockchains to trace income that was never declared.
⬤ The core issue is the widening gap between the rapid spread of crypto and the slow pace at which standard tax rules adapt. As more citizens move into digital assets, regulators race to build sharper tracking tools and to draft plainer rules. Canada's tougher line shows that the period when crypto profits could slip past the tax office is ending quickly.
Marina Lyubimova
