Introduction Yield farming, a popular strategy in decentralized finance (DeFi), involves lending or staking cryptocurrency to earn rewards in the form of interest or additional tokens. As this activity grows in popularity among Canadian investors, proper accounting practices and tax compliance have become essential. The Canada Revenue Agency (CRA) treats yield farming as a taxable […]
Tag Archives: Canadian Accounting Firms
Introduction As cryptocurrency staking continues to gain popularity, businesses in Canada that participate in staking activities must be aware of the accounting and tax implications. The Canada Revenue Agency (CRA) requires businesses to report staking income accurately, and auditors will scrutinize the financial records related to these activities. This article explains the auditing considerations for […]
Introduction As the Canadian Revenue Agency (CRA) tightens regulations on cryptocurrency activities, Initial DEX Offerings (IDOs) have emerged as a significant point of interest for both investors and tax authorities. Participating in IDOs, which are decentralized token sales, involves the acquisition and trading of digital assets, making it crucial for Canadian participants to understand the […]
Introduction Investing in Initial DEX Offerings (IDOs) can be highly rewarding but comes with specific tax implications in Canada. Understanding these implications and adopting effective tax planning strategies can help investors minimize their tax liabilities and ensure compliance with the Canada Revenue Agency (CRA). Understanding IDOs and Taxable Events IDOs are a method of raising […]
Introduction Non-Fungible Tokens (NFTs) have created new revenue streams for creators, primarily through royalties and licensing income. Proper accounting for these types of income is essential for ensuring compliance with Canadian accounting standards and tax regulations. This article provides an overview of how to handle NFT royalties and licensing income in your financial statements. Recognizing […]
Introduction Non-Fungible Tokens (NFTs) have gained significant traction in recent years, becoming a popular digital asset among investors and creators. However, accounting for NFTs under Canadian standards can be complex due to their unique nature. This article outlines the key considerations for recording NFTs in financial statements according to Canadian guidelines. Classification of NFTs NFTs […]
Introduction As yield farming continues to grow in popularity, many Canadian investors are participating in platforms based outside of Canada. However, using foreign platforms has specific tax implications that must be understood to ensure compliance with Canadian tax laws. Foreign Income Reporting The CRA requires Canadian residents to report all worldwide income, including income earned […]
Introduction Yield farming has become a popular way for cryptocurrency investors to earn rewards by lending or staking their digital assets. However, with these rewards come tax obligations that Canadian investors must understand. The Canada Revenue Agency (CRA) has outlined specific guidelines on how yield farming income is to be reported and taxed. CRA’s Stance […]
Introduction Staking activities have become a popular way for cryptocurrency holders to earn rewards, but with these rewards come certain tax obligations. Proper record-keeping is crucial for anyone engaging in staking activities in Canada to ensure compliance with the Canada Revenue Agency (CRA) regulations. Why Record-Keeping is Important The CRA requires detailed records of all […]
Introduction As the Canada Revenue Agency (CRA) continues to collect taxes and enforce compliance across Canada, scammers are also increasingly impersonating CRA officials to deceive taxpayers into paying false debts or providing sensitive personal information. Many Canadians now find themselves wary whenever they receive communications from anyone claiming to represent the CRA. This comprehensive guide […]