Canada Struggles to Track Crypto Taxes as $100M Recovered in Audits
Canada's tax authority flagged 40% of crypto users for evasion risk while recovering $100 million through audits amid legal tracking limitations.Summary
The Canadian Revenue Agency (CRA) revealed that 40% of taxpayers using cryptoasset platforms are evading taxes or are at high risk of non-compliance. Despite having 35 auditors working on over 230 files, which yielded $100 million in recovered taxes over the last three years, the CRA acknowledged significant legal limitations in reliably identifying and assessing crypto taxpayers. This challenge was highlighted in efforts to compel disclosures from platforms like Dapper Labs, where negotiations reduced the scope of sought user data significantly. In response to these limitations and evolving financial crime, the Department of Finance announced new legislation expected by Spring 2026. Separately, Canada's financial intelligence unit, FINTRAC, fined KuCoin over $19.5 million for failing to register as a foreign money services business.
(Source：CoinDesk)