Bitcoin is treated as an investment asset (similar to stocks or bonds) by the Canada Revenue Agency (CRA). If you've bought, sold or earned BTC during the financial year, you'll likely need to report it at tax time. Investors must declare any profits as capital gains, while losses can be used to reduce your tax bill or offset any future capital gains.
Note that crypto earnings held in a Tax-Free Savings Account (TFSA) are not taxed, provided you stay within your annual contribution limit.
If you make frequent BTC trades in a professional capacity you may be classified as a professional trader, which is a bit more complex. Learn more in our guide to crypto tax in Canada or use our round-up of the best crypto tax software to make tax reporting easier.