There have been major new developments in the way the CRA can collect information about crypto investors. Since March 2021, Coinsquare has been required to provide the CRA with information about any customer with accounts valued at more than $20,000 CAD. While 90% of Coinsquare customers are unaffected, the information has changed the game for the CRA when it seeks to audit taxpayers who conduct NFT or cryptocurrency transactions. The CRA also works with crypto exchanges to track transactions.
This has added urgency to filing a Voluntary Disclosure if you have unreported NFT or crypto income. In order to qualify for the Voluntary Disclosure Program, the CRA must not already know about the issue. Once a CRA crypto tax audit begins, it’s too late. Taxpayers may not even be aware that the CRA has already initiated an investigation into their transactions.
Once you discover you have unreported income, get in touch with a crypto tax lawyer immediately.