More guidance from the CRA on bitcoin activities and transactions
By Timothy Fitzsimmons
Following the recent Internal Revenue Service (IRS) publication on the US tax treatment of bitcoin activities and transactions, the Canada Revenue Agency (CRA) has issued further guidance on the Canadian tax issues arising in respect of the virtual currency.
In CRA Document No. 2014-052511E5 ‘Virtual Currencies (Bitcoins)’ (28 March 2014), the CRA was asked several questions about bitcoin activities and transactions (not all of the underlying facts are described in the technical interpretation, but we can infer what the taxpayer asked from the responses provided by the CRA).
In respect of bitcoin ‘mining’, the CRA noted the difference between business and personal activities. In Stewart v The Queen (2002 SCC 46), the Supreme Court of Canada stated that an activity may be commercial in nature if the taxpayer had a subjective intention to profit and there was evidence of business-like behaviour supporting such intention. Whether a particular activity is undertaken for profit is a question of fact that can only be determined on a case-by-case basis. The CRA stated that, in this case, the taxpayer appeared to be operating a bitcoin mining business…
Click on the link below to read the rest of the Dentons briefing.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Dentons
News from The Lawyer
Briefings from Dentons
The New Jersey Supreme Court refines ‘Toys ‘R’ Us’ standard and adopts the Ellerth/Faragher test for supervisory sexual harassment.
In a landmark case the High Court has declared that Winchester City Council committed a serious, procedural and substantive breach of the public procurement regime.
Analysis from The Lawyer
Life in Canada is getting harder for firms as commodities prices fall and work volumes slow
Which firms are cutting it in this era of slimline rosters, and who are the GC new brooms making clean sweeps? The Lawyer can reveal all