Canada Revenue Agency turns eye to cryptocurrency audits.

Canada’s tax collector has begun auditing individuals and businesses involved in cryptocurrency.

Individuals and entities identified as reporting cryptocurrency gains and losses are being asked to provide more information on their involvement in the space and how they conduct transactions.

The initial audit questions are broken up into categories starting with general and proceeds into specialized sections for those involved with personal investments and trading, businesses accepting cryptocurrency as payment and businesses involved with cryptocurrency ATM machines.

Questions range from: source, KYC/AML, mining, personal use, specific exchanges and mixers.

The CRA explains the rationale behind the questionnaire: “The CRA’s enhanced efforts in this space stem directly from its broader Underground Economy Strategy, which includes a commitment to monitor emerging platforms and new business models, with a special focus on the sharing economy and digital currencies.

The audit notes that the questionnaire is not exhaustive and the CRA may require additional information.

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