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If you think cryptocurrency income is hidden from the CRA, you’re wrong

Friday, March 09, 2018 @ 8:53 AM | By Rob Winters and Peter Muto

Much is written about how the Canada Revenue Agency (CRA) taxes income or capital gains earned from the disposition of bitcoins and other cryptocurrencies (collectively called BTC). Something that has not attracted much attention is CRA’s power to obtain information from third parties about BTC holdings and transactions of Canadian taxpayers.

Cryptocurrencies are often regarded as being anonymous. That is incorrect. BTC holdings are not directly associated with the user’s identity, but records of all BTC transactions are part of a public ledger, and close analysis...