The Canadian Revenue Agency (CRA) has tightened its investigation into tax evasion using cryptocurrencycurrency. CRA has recovered $54 million in cryptocurrencycurrency financial transactions done without a declaration through fiscal year 2023-2024.
According to David Rotfleisch, a seasoned tax attorney, the CRA’s efforts may be a tiny step in comparison to the size of the problem. He claims that the revised amount is quite little in comparison to the range of cryptocurrencycurrency transactions. The CRA adopted new tools to educate taxpayers, particularly about prominent digital currencies such as Bitcoin and Ethereum.
The compliance branch’s director general, Sahil Behal, stated that approximately 400 cryptocurrencycurrency audits have been initiated.
Poll Reveals Lack of Awareness
Following a poll that found that many Canadians are uninformed of cryptocurrency taxation legislation, the CRA issued an intent-to-audit notice. This method targets individuals who are likely to have received undeclared money from Coinsquare trades. Declarants have 45 days to voluntarily declare concealed income to avoid penalties and interest.
Also read: Tether Partners with Chainalysis to Enhance Monitoring of USDT Transactions
