Canada’s Revenue Agency (CRA) has collected over 100 million Canadian dollars through cryptocurrency-related audits in the past three years. Despite this, no criminal charges have been filed against any crypto users since 2020, highlighting structural weaknesses in the country’s enforcement capabilities. The CRA employs a dedicated team of 35 auditors specialized in cryptocurrency matters, who have handled more than 230 cases to date. It is estimated that around 40 percent of taxpayers using crypto platforms have either underreported their income or face a higher risk of non-compliance. However, the agency’s chief crypto auditor acknowledged in an affidavit that identifying crypto taxpayers and reasonably estimating their taxable income remains a challenge. Furthermore, the CRA has obtained a federal court order to demand data on 2,500 users from Deeper Labs, an NFT company known for products like NBA Top Shot and CryptoKitties. Initially, the CRA sought information on 18,000 top users, but negotiations with the company’s management and lawyers reduced this number. This marks the second time a Canadian court has ordered a crypto firm to disclose user data, the first being a 2020 order for Toronto-based exchange Coinsquare. Cryptocurrencies play an increasingly significant role in the global financial system, prompting countries to tighten tax collection and financial oversight laws. Canada continues to enhance its regulatory efforts in this sector, although legal and technical challenges persist due to the nature of cryptocurrencies. Moving forward, the CRA aims to improve crypto tax compliance and strengthen measures against financial misconduct.
Source: binance
