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Canada Revenue Agency says tax rules apply to bitcoin

Canada Revenue Agency says tax rules apply to bitcoin

The Canada Revenue Agency issued an official release on how to treat bitcoin and other virtual currencies for taxation this week after signalling its intent to do so back in May.

The guidance gives tax advisors working with Canadian bitcoin companies something to go on when working within the bitcoin space. Although it contains no new information, it does reinforce the CRA’s previous statement on the subject.

The fact sheet, entitled ‘What you should know about Digital Currency’, is a very brief outline that simply states that tax rules apply when it is used to pay for goods and services in the same way the rules for barter transactions apply and links to the CRA’s rules on Barter Transactions after defining barter transaction and giving an example of buying movie tickets.

The CRA also points out that since digital currency can be traded like a commodity, any resulting gains can be treated as taxable income or capital for the taxpayer and links to an archived document on Transactions in Securities.

tax file 

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This entry was posted on November 9, 2013 by and tagged .

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