Author Archives: Tax Partners

Introduction As cryptocurrency transactions become more common in Canada, businesses and individuals need to understand their obligations related to Goods and Services Tax (GST) and Harmonized Sales Tax (HST).  The Canada Revenue Agency (CRA) has provided guidelines on how GST/HST applies to cryptocurrency transactions, but there are still complexities to navigate. This article explores the […]

Introduction As decentralized finance (DeFi) grows in popularity, Canadian taxpayers involved in yield farming face increased scrutiny from the Canada Revenue Agency (CRA). Yield farming, which involves staking or lending cryptocurrency in exchange for rewards, is considered taxable income, and the CRA has ramped up its efforts to audit cryptocurrency activities.  In this article, we […]

Introduction As digital currencies, such as Bitcoin and Ethereum, become increasingly mainstream, Canadian taxpayers and businesses need to understand the tax implications associated with using, trading, or earning virtual currencies. Virtual currencies are blockchain-based digital assets that can be used to buy or sell goods and services, or even transferred between users without the need […]

Introduction With the rise of decentralized finance (DeFi) platforms, Canadian investors engaged in yield farming are not only subject to income tax but also need to consider the Goods and Services Tax (GST) and Harmonized Sales Tax (HST).  As yield farming involves providing liquidity or staking cryptocurrency in exchange for rewards, the CRA’s stance on […]

Introduction As cryptocurrency mining expands globally, many Canadian businesses and individuals are setting up foreign mining operations to take advantage of favorable conditions such as lower electricity costs or more lenient regulations. However, mining operations conducted outside of Canada have important tax implications for Canadian residents.  Understanding how foreign mining activities are taxed in Canada […]

Introduction The cryptocurrency market has grown exponentially, providing opportunities for traders and businesses to leverage blockchain technologies, smart contracts, and non-fungible tokens (NFTs). For Canadian-controlled private corporations (CCPCs), there are substantial tax benefits associated with structuring a cryptocurrency trading business.  This article delves into these benefits, focusing on how CCPCs can leverage the Small Business Deduction […]

Introduction As cryptocurrency investments and activities like staking and mining become more popular, Canadians earning income from crypto rewards must plan their taxes carefully to minimize liabilities and stay compliant with CRA regulations.  With proper tax planning strategies, individuals and businesses can optimize their reporting of cryptocurrency reward income and potentially reduce their overall tax […]

Introduction As cryptocurrency becomes more prevalent, businesses in Canada are engaging in various crypto-related activities, including staking and mining. While both activities involve earning cryptocurrency, the tax and accounting treatments for staking and mining differ significantly.  Understanding these differences is essential for Canadian businesses to comply with CRA regulations and optimize their tax reporting. What […]

Introduction With the rising popularity of Bitcoin as an investment asset, maintaining accurate records and ensuring compliance with Canadian tax laws has become more important than ever. The Canada Revenue Agency (CRA) requires detailed record-keeping for all cryptocurrency transactions, including Bitcoin trades and sales.  Failure to keep accurate records can lead to audits, penalties, and […]

Introduction With the rapid growth of decentralized finance (DeFi) and the increasing popularity of Initial DEX Offerings (IDOs), the Canada Revenue Agency (CRA) has intensified its scrutiny of cryptocurrency transactions. IDO participants, particularly those involved in frequent trading or large-scale investments, are at a heightened risk of audits due to the complexity and volume of […]