Canada Revenue Agency to Chase Crypto Tax Evaders for $39.5 Million in Suspected Unpaid Taxes

The Canada Revenue Agency (CRA) has launched nearly 400 audits to curb cryptocurrency tax evasion, aiming to recover 54 million Canadian dollars (about 39.5 million U.S. dollars) in suspected unpaid taxes. The move highlights the Canada Revenue Agency's determination to combat tax evasion and demonstrates a strategy to strengthen cryptocurrency compliance. Although the audit is ongoing, the CRA also recognizes the need to strengthen public education on cryptocurrency tax obligations and ensure that all taxable cryptocurrency transactions are transparent and compliant. Veteran tax lawyer David Rotfleisch criticized the current measures as insufficient and called for increased education efforts. To meet the challenges, Canada plans to implement the Crypto Asset Reporting Framework (CARF) by 2026 and emphasize that cryptocurrency capital gains must be included in tax returns. (Beincrypto)