Dennis Domazet with Deloitte says Canada’s tax rules are general enough to apply to any sort of taxable income, including cryptocurrencies like bitcoin. (Christophe Morin/Bloomberg) Ashleigh Mattern is a web writer and reporter with CBC Saskatoon.
Email: firstname.lastname@example.org (Note: CBC does not endorse and is not responsible for the content of external links.) Cryptocurrency investors need to prepare for the tax season like everyone else. Alexia Hefti, blockchain tax lead at Deloitte, said it’s a common misconception that you only have to report your gains when you trade cryptocurrency back into Canadian dollars.
Another misconception is that people actively trading cryptocurrencies don’t need to record those trades. “A lot of Canadians this year have been trading different types of cryptocurrencies — so for example bitcoin to ether, ether to litecoin, and so on — each of those transactions is a disposition of property and is taxable,” Hefti said.
Dennis Domazet, partner in charge of Deloitte’s blockchain practice in Canada, said Canadian taxpayers are subject to tax on their worldwide income. “As a starting point, everybody should approach any sort of profit making activity as taxable,” Domazet said.
The way cryptocurrency holdings will be dealt in your taxes with will vary depending on how you used it. People actively trading cryptocurrencies, for example, will have to use different reporting methods than people using it to make purchases, or simply holding it. Read more from cbc.ca…
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