Home Finance News Canadian Cryptocurrency Investors to File their Returns on Crypto Investment by April 30 2019

Canadian Cryptocurrency Investors to File their Returns on Crypto Investment by April 30 2019

cryptocurrency canada taxes

The tax collection services of Canada is auditing Canadian Cryptocurrency investors. Extensive questionnaires have been sent to the crypto investors concerning the activities done by them in the cryptocurrency market over the past few years. There are more than 54 questions in this extensive questionnaire that runs across 14 pages.

The Canada Revenue Agency refused to disclose the criteria for selecting the files for the audit citing it might violate the integrity of their risk assessment methodology. The questionnaire will clarify several important facts related to the cryptocurrency investment made by crypto investors.

ShapeShift and Changelly permits the investors to buy and sell the cryptocurrency without disclosing the identity of the customer. The questionnaire therefore asks investors if they did buy or sell crypto through these platforms. The questionnaire exhaustively ponders into the details of how the investors brought the digital assets.  There are questions about the medium of purchase and the usage of services which provide for mixing of digital coins etc.

The organization looks at digital currencies as commodities and therefore cryptocurrency is subject to taxes like any business income or capital profits. All the crypto-investors in Canada are directed to file their returns before April 30.  There is a lot of software available to help crypto investors calculate the taxes on their assets using famous cryptocurrency sites like Coinbase, Poloniex, and Gemini.

A research report from Canaccord Genuity Capital Markets, based in Vancouver on BTC stated that the trends were interestingly Bullish.  They had to state that the trends were optimistic or too optimistic.

The Market Watch report stated, “HODLers could be set for a change in their fortunes.”  The patterns in trends are indicative of that BTC might be en route to $20,000.

Analysts Michael Graham and Scott Suh just like Justin Sun of Tron noted that Bitcoin might trend in the $3,000 to $5,000 range for the most of the year 2019. However, it is not expected for the crypto to touch upon the lower lows. Several other pioneers in the cryptocurrency industry have been talking about, “bullish runs, followed by selling pressures.”

Canaccord wrote “We point to tangible catalysts which could propel the price of Bitcoin in 2019. For one, institutional custody solutions are expected to launch in the first half of 2019, which will be led by Fidelity Digital Assets.”

An institutional herd is expected following the launch from Fidelity. There are a lot of other things happening for Bitcoin and the overall cryptocurrency industry.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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