Canada’s Crypto Tax Crackdown Reveals Widespread Non-Compliance
The Canada Revenue Agency (CRA) has uncovered alarming tax evasion trends among cryptocurrency users, with 40% of audited cases showing either outright non-filing (15%) or high-risk underreporting (30%). The agency attributes this to the pseudonymous nature of blockchain transactions, which complicate enforcement efforts.
Since 2020, the CRA's dedicated crypto audit unit has recovered $100 million from 230 investigations—all resolved civilly despite clear evidence of wrongdoing. No criminal charges have been filed, reflecting the challenges of prosecuting cross-border digital asset cases.
New legislation is expected as regulators grapple with what one official called 'a perfect storm of technological opacity and willful non-compliance.' The findings spotlight tensions between decentralized finance ideals and governmental revenue requirements.
