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BitCoin Tax in Canada

by on29 April 2013 3453 times

It seems that these days everyone is involved in trade or mining of the Bitcoin, and it did not go unnoticed at the Canadian tax authorities (CRA/ARC - Canada

Bitcoin

Revenue Agency/Agence du Revenu du Canada) who have decided to start charging sales tax on the transactions with this currency. According to the CBC's website, the tax will be applied based on a two separate rules depending on whether Bitcoin is used as real money to buy things, or whether it is only used for speculative investment.

So basically in first case it would be affected by the tax (which would be specific for every country) while in the second case it would be treated as trading of stocks and bonds. Realtor Paul Chavady put his house on sale priced in BitCoins and he even got some offers, and he thinks that „When you sell [the BitCoins], they will deposit that in your account. As soon as it turns into Canadian dollars, it's back in the eyes of the CRA and everybody else. If you get a big deposit of $10,000, or $100,000, they are going to say,“Hey, where did that come from?““

Since BitCoin is becoming more and more popular, we could soon expect that more and more tax authoritires will follow the example from their Canadian colleagues.

Anyone else see this coming? Tell us in our Forum

Last modified on 02 May 2013
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